Don't Make This Mistake: How A $16 'Buy Now, Pay Later' Debt Blocked A Woman From Getting A Home Loan Despite $100k Savings

Buy-now-pay-later (BNPL) apps have surged in popularity, especially among younger generations, who are drawn to the ease of access and flexible repayment options. However, as more people use these services, defaults and delinquencies are also rising. Factors such as a slowing job market, wage stagnation, and high inflation are straining household budgets, making it harder for borrowers to manage their financial obligations. For instance, Lou, a 22-year-old student and full-time worker, was surprised when her mortgage application was denied in part due to a $16 debt from an Afterpay BNPL account, despite her excellent savings and credit history.

Lou, who is studying commerce and IT at Macquarie University, had saved $100,000 for a home downpayment and had never missed a loan repayment in her three years of using credit. However, her $38,000 HECS-HELP debt, a student loan managed by the Australian government, significantly reduced her borrowing capacity by up to $90,000. This unexpected shortfall delayed her property purchase plans. After eventually securing a pre-approved loan from an online lender, the lender flagged her small BNPL debt and required its full repayment before approving the mortgage.

Experts like Soren Financial’s Mansour Soltani advise borrowers to close BNPL accounts before applying for home loans, as these debts can severely reduce borrowing capacity. He explained that BNPL accounts are scrutinized by lenders, who may view them as risky, particularly when used for essential expenses like utility bills. Soltani also noted that HECS debts are treated similarly to personal loans, with substantial impacts on home loan serviceability. Borrowers must clear their entire HECS debt to improve their chances of securing a loan, as partial repayments are not sufficient. (Full story)

Olivia, a team lead, discovered she was earning up to £9,000 less than her subordinates, sparking a heated exchange with her boss, Tom, and HR. Despite her significant contributions, including increasing client spending by 30%, Olivia's concerns were dismissed, with Tom claiming salary structures were complex and tied to industry norms. Frustrated, Olivia confronted HR directly after learning junior employees earned more than her. Her experience underscores broader issues like pay disparity, gender pay gaps, and salary transparency. Career experts advise employees to research market rates, negotiate salary adjustments based on performance, and consider new opportunities if underpaid. (Full story)

An employee's act of kindness during her boss Wanda's difficult time led to an unhealthy, clingy relationship that became difficult to manage. Despite Wanda's professional competence, her personal attachment has blurred the boundaries between work and personal life. The employee now struggles to distance herself, as Wanda frequently seeks inclusion in family events and vacations, despite the employee's efforts to subtly discourage it. Fearful of workplace repercussions, the employee sought advice on how to set boundaries. The advice emphasized the importance of establishing clear personal-professional limits to maintain a healthy work-life balance. (Full story)

An August YouGov survey found that inflation and high prices are top concerns for US voters, with many also worried about the economy and job market. Both Kamala Harris and Donald Trump are focusing on economic strategies, with Harris proposing measures like banning grocery price gouging, tax credits for families with newborns, and down payment assistance for homebuyers. Some economists view her agenda as unrealistic, warning of potential negative consequences like shortages and black markets. Trump, who criticized Harris's plan as "Communist," aims to lower inflation through tariff hikes and tax cuts, though experts caution that his proposals may raise costs. (Full story)

Gen Z and millennials are embracing a new trend of celebrating personal and professional milestones with "success showers," akin to bridal or baby showers but focused on achievements beyond traditional life events. Morgan Prouse, a PR executive, popularized this concept by hosting a "success shower" to mark her career advancement. These celebrations, often among ambitious women, highlight professional successes and personal achievements outside of marriage and motherhood. With younger generations prioritizing career and financial independence over traditional milestones, success showers provide a way to honor these accomplishments. Women like Kellie Gerardi and Amy Chan are leading this movement, using these events to celebrate significant career milestones and encourage others to recognize diverse forms of success. (Full story)