When One Debt Trap Lender Recommends Another

This Black Friday, a cartoon bear wants you to buy now and pay later

Andy Spears


Email solicitation from Dave App

I’ve written a lot about the pain of buy now, pay later loans.

In short, while Buy Now, Pay Later CAN provide relatively easy access to small-dollar credit at rates that are comparatively better than payday loans, the profile of BNPL borrowers seems to suggest that these loans are adding to the burden borne by already overextended borrowers rather than alleviating a need for those not using other forms of credit.

I’ve also written about a cash-bearing cartoon bear— and the debt trap the Dave App can create.

Now, though, I get to combine the two.

It’s no surprise, really, that one payday predator embraces the antics of another.

In their Black Friday email encouraging users to take out a cash advance, the Dave App is also noting that consumers can increase the buying power of this high-tech payday loan by using buy now, pay later.

One of Dave’s “tips” for Black Friday spending

So, according to Dave, you should get a cash advance and then use a buy now, pay later loan (or a series of them) to extend the buying power of your Dave loan.

Sounds like a debt trap lender encouraging a cycle of debt that would require you to take out yet another loan from the cartoon bear.

It also sounds like a great way to turn your Holiday spending into a nightmare that lasts well into the new year.

As one survey noted:

32% of Buy Now Pay Later plan users have had to skip paying an essential bill such as rent, utilities or child support in order to make their payments. Even after that, 30% report that they’ve struggled to make their payments.

Have a happier Holiday season — and avoid cartoon bears and other debt trap payday predators.




Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .