Lana Becker is in debt to a burrito. And she’ll be paying for it for years.
It’s true! Becker fell into the buy now, pay later fast food ‘payday loans’ style scam that TikTok users have dubbed as ‘Financing a Burrito’.
Eat Now, Pay For It Later
While the phrase “finance a burrito” is typically a joke, the concept of paying for small purchases in installments or “Buy Now, Pay Later” (BNPL) has become wildly popular, especially among the terminally online and always broke GenZ set. Hundreds of apps now allow customers to effectively “finance” a burrito, especially if you’re ordering it through a larger food delivery service or a restaurant that integrates with these BNPL platforms.
Major food delivery apps are now partnering with fintech companies like Klarna, Sezzle, Afterpay, and Zip, which specialize in smaller loans that allow customers to spread the cost of their fast-food orders over a series of interest-free installments (as long as you pay on time). And as Becker found out, when you don’t, these food apps bite down hard with punishing late fees and insane interest rates that would make a mafia boss blush.
Getting Burnt by Burritos
“The app said I could split the payment for my UberEats over four easy payments. It started with a burrito here and there and when they never really bugged me about actually paying I started buying other stuff. More fast food, clothes, sneakers and a bunch of other junk that I normally couldn’t afford. But then the collection calls started,” Becker sobs to GWU! via Microsoft Teams.
The 19-year-old NYU film student was told by a collections agent based in Mumbai that she was being charged a whopping 31% interest on her mounting debt in addition to numerous surcharges and late fees.
Financial Advisor wraps to youth
Utica, New York Financial advisor, Doug, explains that that level of interest is technically illegal in most states, but BNPL isn’t technically a loan and the technology has outpaced legislation to protect consumers from themselves.
“Yes, the economy is basically broken and there are no jobs for young people, but it’s all in the terms and conditions, which most people never read. Especially GenZ. I’m sorry, but they are literally the dumbest generation,” frowns Doug from his mobile office in Greensborrough Park.
Financially Cooked
And Becker isn’t the only Gen Z dummy to have been baited and switched with the promise of a free lunch.
New mom and social media influencer Sara Speaks recently broke down in a viral video on social media about being wrapped up in a burrito financial fiasco.
“Hey guys. So, I’m, like, not okay. And I just have to share with you what happened to me and warn you not to be as trusting about how you, like, pay for things,” Speaks spoke to her followers.
She continued to her 207 subscribers: “So I started buying baby formula for Baby Speaks using buy now, pay later and I did not realize how it actually works. And it’s, like, not good fam.” Speaks goes on to relate that she became stuck in a debt and borrowing cycle that was costing her far more than her income as an influencer was bringing in. “Baby Speaks formula was, like, literally costing too much so I like thought … I’ll just pay for it when she’s in college. Or something? Okay, I wasn’t thinking.”
Speaks ends the video promising that her child will not be as stupid as she is, as now all she can afford to feed her is breast milk.
“I was feeding her the artificial formula so I would have more time to make more videos to make more money but it turns out that was really, really, like, dumb. Now Baby Speaks will actually be healthier and smarter thanks to my, like, breast milk.”
Dollar sign Doug notes that on one hand, this type of payment method democratizes access to what might be considered a premium quick-service meal to a generation raised on fast food garbage who don’t get how money works. “On the other hand,” he cautions, “It raises ethical questions about the psychological impact of financing everyday consumables. Are we normalizing debt for a burrito? GenZ math does not amount to a hill of beans.”
