Is Catch the Solution to Your Debt Problems?

Advertisers telling customers that they will save money by buying the seller’s products is the oldest trick in the book.  It is one thing to offer your products at a lower price than your competitors, but if you buy something, you invariably spend more money than if you had not bought it.  The exceptions are cases like buying an electric vehicle that will eventually pay for itself in the gas you don’t buy or a bicycle that will pay for itself in the rideshare rides you don’t buy.  Cash back apps like Catch give you credits to use toward future purchases every time you use them to make a purchase.  They are especially popular with young consumers whose limited credit history prevents them from qualifying for credit cards.  The largest demographic group of Catch users is women below the age of 35, and purchases of clothing and personal care items make up the largest share of purchases on the app.  While apps like Catch are less of a debt trap than buy now pay later (BNPL) services, they will not by themselves improve your financial situation enough to get you out of debt.  To find out more about small changes to your spending habits that you can make in order to get out of debt more quickly, contact a Boca Raton debt lawyer.

Catch Can Help You Avoid Spending Money You Don’t Have

A big difference between BNPL and checkout payment processor apps like Catch is that you pay for the entire purchase amount at the time of sale.  When you make the payment, Catch gives you a credit to apply to a future purchase.  It is similar to earning reward points or when CVS gives you store coupons whenever you make a purchase from the store.  The difference is that you can use the Catch credit that you earn at any participating retailer.

At best, apps like Catch can help you be more intentional about your purchases.  Getting an article of clothing free after accumulating enough Catch points is certainly preferable than buying the same article of clothing on BNPL and worrying later about how you will be able to afford to pay for it.

Catch Does Not Help You Pay Off Debts or Build Credit

While Catch and similar apps probably will not make your credit score lower, they also will not make it higher.  You only get Catch credit when you make debit card purchases, and these do not count toward your credit history.  Furthermore, you cannot use the credits you accumulate on Catch toward debt repayment, only toward retail purchases.  Meanwhile, you will have more money left in your budget to pay down your debts.

Work With a Debt Lawyer About Reassessing Your Finances

Not making impulse purchases is only the first step to getting out of debt.  A South Florida debt lawyer can help you be more intentional about your spending habits and look at the big picture about your financial situation.  Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.

Source:

modernretail.co/technology/how-catch-is-billing-itself-as-an-alternative-to-buy-now-pay-later/