The rise of buy-now-pay-later platforms have made it easier than ever for consumers to spend money they don’t have. But shrewd investor Hugh Honey is so confident there will be a credit collapse, he has racked up thousands of dollars in Afterpay (ASX: APT) debt expecting it all to be wiped if the company collapses.
Having opened an account with Afterpay and making a few small purchases and paying them back, Honey quickly had his spending limit increased to $1,000 without having to undergo a credit check or hand over payslips.
“After they gave me $1,000 credit, I went around to the whole extended family and opened up accounts for them,” said Honey.
“The payments come out as direct debit but if there’s no money in the bank account, then there’s nothing for them to take back.
“Meanwhile, I’m in my lounge room which I’ve decked out with a new television, couch, surround sound and Roomba.”
“Afterpay is still new so it’s only a matter of time until everyone defaults and the company collapses. We’ve all seen that epic biopic Fight Club.”
Honey has previously declared bankruptcy.
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