Millennials Are Using Financing To Pay For $450 Blenders

Tyler Durden's picture

Low wages, mounting student debt and rising rents in the trendy urban centers where millennials prefer to live leave young people with little to spend on luxuries like an iPhone, or tickets to Fyre Festival pt. II. So, since millennials can’t seem to buy anything outright, payment companies are partnering with businesses to offer financing options for goods that, in the past, would’ve gone straight on the credit card, according to MarketWatch.

With interest rates ranging from 0% to 30%, compared with the average rate of 17% on credit cards, millennials are increasingly financing purchases from airplane tickets to luxury bedsheets with loans from payment companies like PayPal and Affirm. Indeed, millennials' seeming inability to pay for anything outright has caused revolving debt in the US to balloon past $1 trillion.

Millennials want luxury sheets, Peloton exercise bikes and music festival tickets, but they don’t always have enough cash or a desire to put them on a credit card. So they are turning to an even more expensive method of payment: financing. In recent years, payment companies including PayPal, Affirm and Bread have created installment plans for retailers that give consumers the option to finance the weirdest purchases over time.”

PayPal works with retailers to offer financing to consumers, who typically use it to pay for a range of goods, from guitars to luxury handbags. If borrowers don’t pay down their balance within an agreed-upon timeframe, they could see interest rates on the purchase rise as high as 20% APR.

“PayPal offers two types of credit, both as part of a program called PayPal Credit. One option is to wait six months without paying anything, and no interest on purchases over $99 from select retailers. The other option is an installment payment plan called Easy Payments: Consumers pay interest at an APR of 19.99% if they don’t first pay off their balance within the term they select.

 

Before shoppers are approved for either product, PayPal does a hard credit inquiry, which can result in a few points docked from consumers’ scores, temporarily. But once approved, PayPal doesn’t need to do a second one for future products. Consumers finance luxury handbags, guitars from Dave’s Guitars, pots and pans from Sur La Table and blenders from Vitamix, said Dana Warren, PayPal’s senior director of merchant distribution for PayPal Credit.”

Holly Hacker, Vitamix’s director of direct sales and customer experience, told MarketWatch that if you can’t afford one of their blenders, don’t buy one. But would young single people buy a nearly $500 blender if they couldn't finance it?

“Vitamix blenders start at $450, an easier purchase for higher-income households, but “out of range” for some who are younger, said Holly Hacker, Vitamix’s director of direct sales and customer experience.

 

Shoppers have also financed items including Cartier bracelets, worth $5,000 to $6,000 and Chanel wallets, worth about $1,700 to $1,900 from Linda’s Stuff, a luxury consignment website run by Linda Lightman, the company’s founder and CEO.”

Of course, personal-finance experts say consumers should avoid financing “discretionary” purchases like the examples mentioned above.

“However, personal-finance experts typically warn against making purchases, even on a financing plan, that consumers can’t afford. “You want to avoid financing these types of discretionary purchases,” said Nick Clements, the co-founder of personal-finance company MagnifyMoney, who previously worked in the credit-card industry. “If you’re looking for a way to finance discretionary purchases, look at your budget and ask yourself the hard question: Why.’”

Affirm, another financing company, says the most common type of purchase they help finance is travel, followed by home wares and apparel. That fits with millennials' penchant for valuing experiences like travel over physical goods. And what happens when a consumer doesn’t pay? Affirm takes a writeoff and sells the debt to a collections agency, then disqualifies the borrower from their service. With millennials showing.

Most millennials came of age during a period when interest rates were at rock bottom. But now that interest rates are slowly moving higher, will young people stop relying on debt to fund everyday purchases? Or will they slowly see their balances creep higher as they find it increasingly difficult to pay down what they owe, causing aggregate debt levels to soar?
 

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Bigly's picture

I can vouch that a vitamix rules....

:-D

 

(and made in the US of US components...)

Honey-Badger's picture

Fuck that I got my mother in law to get us a ninja for Christmas.

AlaricBalth's picture

I would gladly pay you Tuesday for a hamburger today.
J Wellington Wimpy

pods's picture

Vitamix kicks ass. Worth every penny. 

I could go for a shake right about now. 

pods

Miffed Microbiologist's picture

Agreed. I use mine daily. I paid $300 for it a couple of years ago at Costco which really made me cringe but it has been worth it. I'd swear the thing could emulsify a lug nut.

Miffed

pods's picture

It probably could. We make our own nut milks, does almost a good of a job as our ultra turrax's do at work.  

We also got the dry goods container which lets us make our own flour.  Not as much time to do that lately, but it's certainly nice.

I like how you dont have to do any prep. WHole apples, seeds and all. 

pods

Lore's picture

Anybody who spends $450 for a blender has a broken brain, never mind $2K for fucking leather goods. 

Whatever happened to shopping for value?  And substitution? 

Travel is discretionary.  If you have no discretionary savings in your budget, then you don't travel.  You DO have a budget...?

I've told the young people in my family that I'll help them with legitimate financial concerns, but if they go into stupid debt, they're on their own.  The only way to survive financially going forward will be to PAY CASH, ELIMINATE DEBT, AND STAY OUT OF DEBT.  If you can't pay cash, and it isn't a reasonably-priced basic necessity of life, WALK AWAY. 

This discipline should apply to all levels of society.  Your government is the worst spendthrift of all.  The biggest, most dangerous bubble of all is the bubble of Big Government.  You're going to have to force it to go cold turkey, and it's going to resist.  That's part of the reason why so many feathers are ruffled against Trump these days:  the worst sorts of vested interests sense the end of their gravy train and hope to postpone the inevitable by attacking him.  It's absurd, but everything these days is absurd.  It's also why the progressives are out to break down our sense of self and morality and history.  They think by destroying our standards, they can continue to live irresponsibly.  God has other ideas. 

pods's picture

Shopping for value?  I can whip up a shake that requires no prep other than a quick rinse of any of the materials.  Whole apples, seeded grapes, nuts. Almost anything.  Why take grapeseed extract when I can make it myself from the whole food?

Also, processed 75 lbs of tomatoes in one afternoon into 46 quarts of sauce. No need to peel the tomatoes, just toss them in.

That kind of value? 

pods

Lore's picture

I accomplish similar wonders with a knife, a cutting board, and a big crock pot. <grin>

johnconnor's picture

We are all a bunch of cynics on zerohedge but I totally agree with him, vitamin blenders are worth every penny. Built like soviet T34, nearly indestructible, guarantee for life and if you are a health nut like me, you will use it two times a day for smoothies and protein shakes. Definitely investing in healthy living is not like buying a $450 coach purse.

Eyes Opened's picture

WTF is this ?? A Vitamix sales advert thread ??

Git back to doom-porning bitchez

btw... do they have an irish distributor ??   

I think I can git a top-up mortgage...... lol

ejmoosa's picture

Student loans trained students that debt was good...

NashSolstice's picture

Two main reasons someone pays $300 more for a Vitamix than a ninja:

 

1) Vitamix has a 7-10 year warranty which is about as good as a lifetime warranty even with regular use.  Vitamix motors almost never break down because of superior tech.  Ninja motors break down in a year or two tops with regular use.  

2) The combination of superior blades and a higher RPM motor provides better absorption from the same veggies than what a ninja can provide.  The main reason I bought a Vitamix is for the higher aborption rate.. The blades break down the cellulose walls of the veggies more, thereby allowing more vitamins and minerals to be absorbed

Sam Clemons's picture

 you really believe blades break the cellulose walls?  and other blenders wouldn't?

Gold Pedant's picture

Correct, 'cause like the ninja's like blades are only made of unicorn tusk and like vitamatrix's blades are made of like hammer forged unobtanium and stuff, so like unicorn tusk is like all Rockwell 3 which is far too soft to damage the cell walls and can only like cast level 3 oracle spells on the chloroplasts and make 'em all yummy and stuff.

Well, that's what the description on Amazon said anyway.

Lore's picture

You made me snort my tea.

It really is ridiculous. I can just see all these thousands of snowflakes worrying about the cell walls in their smoothies. 

Retired Guy's picture

WOW. I thought my teeth and digestive juices were digesting my food. Who knew there was a way to avoid all that work? Will wonders never cease?

My step father died of colon cancer. It was terrible to watch. Items that poorly digest are called roughage and help to scour out the colon. That is a good thing. An unblended apple a day keeps the cancer doctor away.

JiminyCrickets's picture

Gorging on unmasticated vegtable matter can lead to either fermentation and/or putrification in the guts and build up of nasty toxins.

whatswhat1@yahoo.com's picture

"Gorging on unmasticated vegtable matter can lead to either fermentation and/or putrification in the guts and build up of nasty toxins."

 

One is suppose to chew while they drink.  Short of doing that, chew a stick of gum before or just after you indulge.

subversion's picture

Have owned a Vitamix for almost 20 years and it has never let me down. I use both the dry and regular containers every few days and it still chews through everything. Worth the cash I put down for it. Today things are manufactured to die, you get what you pay for.

c2nnib2l's picture

I've got a ninja myself. It's good ! 

but I've paid for it with my hard cold cash, actually I bought it second hand on ebay (unused) for half price ! I've spent maybe £ 60 in total for it

but I've got a friend (Millenial) commercial property manager age 35, with 4 debit cards and £ 16.000 in debt, plus big loan she took out years ago for about 10 K,  every few months she's asking me if I could lend her some money She's always paying back but this should tell you something 

She's earning 3k per month, but you have to look on her facebook profile 

she's living like a big shoot ! fancy photos, fancy places, restaurants, holidays ;) 

there is a HUGE society presssure to be accepted... she's not the only one out there

it's the fucking social media that is draining this generation if you're not fashionable and you can't show this on your facebook or instagram you're excluded

whatswhat1@yahoo.com's picture

"it's the fucking social media that is draining this generation if you're not fashionable and you can't show this on your facebook or instagram you're excluded"

 

Excluded from what?

From being a broke ass moocher.

She won't be "paying back" after she hits you up for the big bucks and she'll try to guilt trip you for asking for your money.

PT's picture

But if the millenials weren't being blamed for taking on bucket-loads of debt then they would be blamed for killing the economy by not buying anything at all!!!  They can't catch a break.

It sure as hell ain't people who spend within their means that are keeping things rolling.

 

:P

PT's picture

Seriously though c2nnib2l:

Run away from that bitch as fast as you can.  You're not fucked now but you soon will be.  In fact I would bet that it is already too late.  You're already mentally fucked now so that means you can not stop yourself from being physically fucked in the future.  Wrong choice of word too.  You'll be fucked without even getting a fuck.  She sure as hell won't be fucking you.  You're the "loser" whose lifestyle can not compete with her lifestyle - see my blabbering further down.

Try saying, "Sorry, I'm a bit short myself this week.  Just got a ???? bill I have to pay." and watch her sweet begging turn sour.  A little bit of carrot, a little bit of stick, she's got you right where she wants you.  You will not stop lending because she will give you too much stress when you say "No."  And then she'll hate you because you are a weak door mat.

P.S.  Why is she "Borrowing" from you?  Has she hit the limit at the bank?  If you can't say "no" to her then leave town now.  You can thank me later.

OverTheHedge's picture

You are only excluded by those who.are too shallow to be of any interest. If your happiness is based upon what other people think.Of you, you are always going to.struggle.  For some reason, this takes time to learn.

shizzledizzle's picture

Absolutely. These are the vermin that will be the first knocking on your door when things go south. The sad truth is no one is willing to trade a little discomfort for a better tomorrow and worse... they don't even know what real discomfort is. "If only I knew that this (insert calamity here) was going to happen... Boo hoo" No, you KNEW it was not only a possibility but a probability and you cast it aside to live in the moment. This is the very reason to have fences and gates and the tools to deal with those that ignore them. 

Eyes Opened's picture

"she's living like a big shoot !"

I know it was probably a typo ... but I think u may have just invented a nu catch-phrase there !!!

I'm gonna start using it today....

p.s. PT has sage advice there.... don't walk away... RUN !!

 

OK .... back to sellin Vitamixes....

I could see the TEE VEE ads now...(if i had one)

"9 outta 10 ZERO HEDGE CATS PREFER VITAMIX !!". 

yogibear's picture

Millenials  are bankster slaves. 

Owned by Wall Street.

BlindMonkey's picture

I wonder how many are aware of this?

 

I bet it is damn few.

l8apex's picture

Did somebody say damn jew?

PT's picture

But they have to have nice things so they can signal what prosperous survivors they are to the opposite sex so the opposite sex will feel safe giving them babies.  Otherwise the oldies will look sooo much more marketable because they are naturally cooler because they have already had a 20+ year head start to collect trinkets that prove prosperousness to the opposite sex.

Incidentally, that's why you get wrinkles, health problems and "bad" fashion sense as you grow old - otherwise the young ones wouldn't stand a chance, and that's messed up.  What young thing would want to pro-create with another young thing if the old thing already had a house, 20+ extra years of real-world experience and a good-paying job?  Add wrinkles, "bad" fashion sense and health problems and you start levelling out the playing field and that is good for society. 

Except after 2000 the price of housing went bat-shit crazy and millenials were totally priced out of ever owning a house ever.  So now they have to borrow ten life-times worth of munny just to buy a house and that is before they even put anything into it.  The signal to the opposite sex is, "I have this shack that is a ball and chain around my neck because I will have to work forever to pay for some of it, you can see the proof everywhere because I can't afford to repair the walls that keep falling down."

Hence the need to borrow munny for $450 trinkets, the price of which, I'm sure you can agree, pales into insignificance when compared with all the other debt the millenials are carrying.  eg.  "$560 000 debt? (house + car)  $560 450 debt?  Who cares?  The nice bankster man said I could afford it and he wouldn't lie to me, would he?  Besides, all my friends have one and they don't earn more than me so they must be able to afford it too!  And the TV sez I can afford it.  Maffs is hard.  I can just trust the nice bankster man and the TV and all my friends.  Stop giving me a headache.  Now I need to relax with an expensive alcoholic drink and an overseas holiday."

Recently I have started using the term, "Weaponized Idiots".  Two important points: 

1.  By "Idiot", I do not necessarily mean "Idiot".  Often it means "Perfectly normal people though they do not have this specific piece of information."  That helps explain why there are so many of them.  Although I do get pissed off when the "specific piece of information" they lack is the basic maths skills necessary to write a simple household budget or the will to do the same.

2.  You're not safe from Weaponized Idiots.  They are weaponized against you to enslave you.  The banksters "lend" them money so they can bid up prices and now you either pay the higher price or do without (and lose your place in the "fuckability scale" which you gladly give up because any whore that only fucks you for trinkets is too much hard work anyway but I think we can all agree here that you have had something of value stolen from you and given to someone else.)  More recently the Weaponized Idiots have been encouraged to do violent battle against Imaginary Problems and you have been magically endowed with the "problems" that the Weaponized Idiots are fighting against.  And so no-one is talking about the real problems at hand ... but now I am drifting away from the current discussion.

The beauty of the Weaponized Idiots is that there is always plenty more where they came from.  Even if you have to start bankrupting them, they still follow their biological imperative and come back for more.  So you can lend them moar munny, impose ever harsher conditions, sweep all the debt into govt coffers or the Idiot's pension funds, and if they get too nosey then convince the bigger idiots to kill the nosey ones - "Whoops!  Race War!  Nothing to see here!  Look!  North Korea!  Oh, too bad.  You were doing so well, too!  Try again?"

whatswhat1@yahoo.com's picture

hehehe...

 

Not to worry sonny.  The computer program in your skull will begin to slow down as you age so you won't have to spend nights worrying about some filthy gash.  It's a beautiful life after 60!

PT's picture

I keep thinking it is already slowing down but it keeps turning out that I am wrong.  Never mind, it is actually the least of my worries.

Eyes Opened's picture

Fuck levelling that playing field....

2 words my friend ... PLASTIC SURGERY !!! 

PT's picture

I've seen the kind of plastic surgery that rich actors and celebrities can afford.  No fucking way.  That shit makes the playing field even steeper.  Their wealth ensures they get moar pussy despite their plastic surgery, not because of it.

As the other guy said, I'm slowing down so it doesn't matter as much, but I'm not totally "cured" yet.  And as I said to him, I actually have more important things to worry about.

Eyes Opened's picture

PT... with plastic surgery... its not the results, its the fact u are rich enough to piss away good money on it , sooo u MUST be rollin in it...  lol

Money... the REAL APHRODISIAC.... just close your eyes baby & keep saying the mantra "Cartier" "Cartier" Cartier"...  :-)

Edit..

Or "Vitamix" "Vitamix" "Vitamix".... ha ha !!!

Jimbeau's picture

Millenials ARE bankster slaves all right... a lot of them hate those ashcan banksters too. I guess the 'freebies' aspect always wins out over principle.

aloha_snakbar's picture

Well... maybe the blender spits out unicorn colored Bitcons...

Bigly's picture

If you let it go for about 5 min it makes hot soup.

 

I am being serious. ..best blender.

Yen Cross's picture

  Reminds me of that episode of Southpark, where Randy buys that super deluxe Margarita Maker, then tries to return it.

Yen Cross's picture

  Thanks Cog.  I laugh when financial peons talk about 2007, like it was back when the Dinosaurs walked the Earth.

Bunga Bunga's picture

But these high yield debts will be a booster for their parents pension funds. What can go wrong?

boattrash's picture

That's ok. Soros pays $25 per hr for them to riot in the streets...I wonder if they get bodily injury/life insurance...they may really need it soon.

pitz's picture

How many people would buy cell phones if they couldn't finance them?

Seriously, $400 cell phones, people are financing them.

Makes me sick.

Bigly's picture

They are all morons.

That does not make the product suck.

The buyers suck who go into debt for such items.

Ignorance is bliss's picture

I just bought a used cell phone in mint condition on eBay for $130. It was a Galaxy 6s. I paid an extra $4 for a cell phone warranty.