In the Media
Howard Dvorkin, chairman of Debt.com, says BNPL can be a useful tool—or a harmful one. Dvorkin says that you might come out ahead if you use a BNPL loan and pay it off before interest charges kick in instead of carrying a balance on a high-interest credit card.
“If you’re at a dealership ready to buy a car, and the dealer says they can help you pay for that car with an in-house loan, that’s an example of captive financing,” says Howard Dvorkin, an author, certified public accountant (CPA) and chairman of Debt.com.
“These guys (retailers) have had not one year, not two years but 100 years to figure out how to separate you from your money,” says Howard Dvorkin, chairman of Debt.com. “They are very good at it. They want it to be perceived that you are getting a deal, and sometimes that deal is not a real one.”
“Really put some thought into this because you’re making a promise to yourself that this is it — you’re not buying anything more for anyone else,” Howard Dvorkin, chairman of Debt.com, tells Nasdaq.
“With inflation up from last year, consumers are entering one of the priciest holiday seasons during a time when most of them can’t afford it,” said Howard Dvorkin, CPA and chairman of Debt.com. “The pandemic caused many people to stretch their finances, and this holiday season will ask them to pull even further.”
“Just because an announcement to eliminate junk fees was made doesn’t mean all banks may comply in all cases,” says Dvorkin. “Banking consumers should conduct a quick internet search for their account fees. If they’ve already been hit with junk fees, they should call their bank and try to get them waived.”
Debt.com polled a thousand Americans, and most participants said that they are now tracking their finances, and their budgeting habit has helped them get out and stay out of debt.
“Sometimes people with poor credit scores don’t get jobs. Because their job is offered on their ability to handle their finances, and a poor credit score shows that they can’t,” Dvorkin said.
“Consumers are going to spend as much as they did last season, but they are limiting the people they’re spending on. They only have a certain amount of money, so they have to tighten that list of who they’re buying presents for,” said Howard Dvorkin, chairman of Debt.com. “Because of the increased pricing, their dollars won’t go as far as they did last year.”
“The IRS lowers your taxes by raising the standard deduction,” said Howard Dvorkin, CPA and chairman of Debt.com. “Think of it as a chunk of your money the IRS ignores. This year, the IRS will hike the standard deduction by around 7%, depending on your circumstances.”