Are Buy Now, Pay Later services really as beneficial as they appear? Dive into the details of offerings like Affirm, Afterpay, and Klarna.
This Week In Your Wallet: BNPL Insights
Are you part of the 60% of consumers who've tapped into a Buy Now, Pay Later service such as Klarna, Affirm, or Afterpay this holiday season? It seems like a great way to spread the cost over a few months without interest.
However, Kathryn Tuggle's experience returning a winter coat raised some red flags about these services. She found out the lesser-known challenges of BNPL services, particularly with returns. As we approach a time filled with returns, it's crucial to be aware of these potential issues.
Her insights on the hurdles you might face when returning items bought through these services are essential reading. Make sure you're prepared before a return turns your festive spirit into frustration.
When Shifting Directions Becomes Challenging
After sending last week's newsletter, I heard from Carol, a reader from Benton, Kentucky. Her community recently faced devastating tornadoes, and she suggested writing about recovery after losing everything.
To Carol and all those affected, our hearts go out to you. For those facing natural disasters, there are steps to take post-crisis. A thorough guide from MoneyWise details how to secure shelter and provides contact information for your insurance company and mortgage lenders, along with federal and charitable resources. You can find it here.
Another compelling perspective came from a story in The Washington Post about rebuilding Joplin, Missouri, a city that was heavily impacted by a tornado a decade ago. Despite the challenges, the community has grown each year since the disaster. The local volunteers and residents documented their experiences to aid other communities facing similar situations. Access it here.
Lastly, don't forget to check your homeowners insurance policy to ensure it meets your needs if disaster strikes. Here's what you should prioritize if you need to evacuate.
Is Clutter More of a Health Concern or a Financial Issue?
For a long time, I viewed clutter primarily as a financial burden—perhaps that's just my viewpoint. Then I read an article by Jane Brody, a columnist for The New York Times, discussing the dangers of clutter. She highlights how it can present physical hazards, like tripping over items, but also distract from more important tasks.
Many readers shared their thoughts. One standout message came from Phyliss in Wichita, Kansas. She expressed that clutter has caused more stress in her 40-year marriage than any other issue. The contrast between her neatness and her husband's disorganization is a source of constant tension. Sorting through her late mother's belongings, who was a clean hoarder, has added to her exhaustion.
Manchin Tax Update
You might have heard that Senator Joe Manchin (D-WV) is not on board with the Build Back Better plan. While the political discussions about this plan unfold elsewhere, if you were worried about losing the backdoor Roth option for tax-advantaged savings, it seems that it will remain available for now. (For more insights into this strategy or IRAs, check out these podcasts covering various topics.) However, for those in high property tax states, the SALT deduction cap will remain unchanged for the time being.
