Klarna - good or bad thing?

[idk2]

BAD. Its advertised everywhere and they target demographics who know will abuse it aka uni students. I know so many of my friends have got into thousands of pounds worth of debt bc of Klarna. Its so easily accessible and they couldn't resist the temptation of it nor could they afford to pay it back. Its a vicious cycle imo. Not to mention alot of them would be in their overdrafts too! I honestly would get anxious if that was me and the only way they could pay it off was waiting until the following school year and taking out extra from Student Finance to pay it off but getting themselves in more debt (fairs they won't pay it off in the long run).

I am not anti credit. I think it teaches responsibility and alot of my friends learnt the hard way.

 

[Linda La Hughes]

I find klarna really useful as i am an inbetween size so like to be able to order a few to try on without having to refund/exchange/reorder.

I only use it for this as i only shop for things i can afford.

 

[TheRealCarolDanvers]

I think it’s a great app - like others have mentioned I use it to order more than one size, for something last-minute like a night out or a trip away. I used it recently to buy dresses and shoes for my bridesmaids which helped.

However, I do sometimes get a bit carried away despite setting myself a limit and once I’ve paid it off on pay day I have no spare cash left for the rest of the month. I’m trying to use it tactically and whenever I want something online I ask myself the same question I ask myself when I want something that’s high in calories - do I really need that or am I just bored?

 

[blondelolita]

Do I think it’s useful? Yes, 100%. Do I think it’s dangerous? Also yes.
Any kind of credit is dangerous, however with a credit card you apply and understand more what it means, but with Klarna (I’ve used it myself) it isn’t as clearly shown as credit, which is a worry for me as I have had bad debts and slowly paid them off, but most young adults will use Klarna and not realise the effects of it as the Instagram lifestyle makes it seem like you need everything when you can afford it.

 

[BettyCrocker]

Credit of any kind can (and will) be misused, depending on the individual involved. Yes, they target a certain demographic which I’d argue is morally questionable however financial institutions have been doing the same for years. Look at the way banks sell overdraft facilities and credit cards to naive students? Credit is far too easy to obtain. I went to the bank once a few years ago and the lady behind the counter informed me that I was pre-approved for a £5K loan, and that I could have the money in my account within a few hours if I wanted. I hasn’t gone in to enquire about loans and she provided the information without a single prompt from me (I was paying a cheque in!) I appreciate they are in a “sales” position and are trained to up sell products in this way but it felt all too easy, I could have been 5K up that afternoon without even blinking.

I think there needs to be far more education for youngsters on real world finance; teach them about banks/banking/overdrafts/credit cards/debt etc so they understand from a young age how to conduct themselves and how to avoid getting sucked into easy debt that they can’t get out of.

 

[thatstupidcat]

If you use it and pay it back within 30 days, then congratulations: you are 100% not the target demographic. In the same way that credit card companies and bank overdrafts make their profit from people who get hammered with interest and fees.

They can give it a nice sounding or IKEA-style name, but Klarna is just another payday loan company making its megabucks off people who aren’t able to pay it off within the term.

I think it’s no different to gambling companies targeting lonely women with “fun” named online bingo (gambling) apps or MLM (pyramid) schemes targeting women being hammered by childcare fees.

Just because something is legal doesn’t mean it doesn’t stink like tit.

 

[Scorpihoe]

Sorry to go off track - but how is Klarna good for ordering multiple sizes and returning things, easier than to the direct store?

I thought it was just for paying for things in instalments?

 

[Mamacita]

Sorry to go off track - but how is Klarna good for ordering multiple sizes and returning things, easier than to the direct store?

I thought it was just for paying for things in instalments?

I guess it's just so you're keeping the money in your account, rather than paying and waiting for the refund after you return.

 

[They See Me Trolling...]

Sorry to go off track - but how is Klarna good for ordering multiple sizes and returning things, easier than to the direct store?

I thought it was just for paying for things in instalments?

They mean they can order 2 of each size and opt for pay in 30 days. They return what they don’t want/doesn’t fit and only pay for what they have kept. It saves people paying for the order and awaiting a refund.

 

[Scorpihoe]

They mean they can order 2 of each size and opt for pay in 30 days. They return what they don’t want/doesn’t fit and only pay for what they have kept. It saves people paying for the order and awaiting a refund.

thank you for explaining! I’m between sizes so usually order multiple of an item, so I’m considering downloading it for this reason.

 

[They See Me Trolling...]

thank you for explaining! I’m between sizes so usually order multiple of an item, so I’m considering downloading it for this reason.

I mean it’s good in the sense you don’t have to fork out double when you’re unsure of sizes. You can either opt to pay in 30 days or in instalments. Either way, it’s fairly easy if you return stuff even if you have part paid they figure out what is left to be paid etc.

 

[bunnyboo]

I think it's awful.

I see a lot of fast-fashion brands tweeting stuff like "£2 left till pay day? Don't worry, We've got Klarna!"

I thinks its massively unethical and irresponsible to brands to be encouraging people to get into debt for clothing or shoes. I feel like this has got ‘scandal in five years time’ written all over it.

 

[HankMcPrank]

I have account with clear pay, I have a limit but haven’t yet spent anything as the temptation would get the better of Me. BUT it’s there if I need it x

 

[No style rocky]

I use it. For example I needed a new coat, so I was able to order 3 from ASOS, I sent back the 2 I didn’t like and my order amount was processed/changed quickly. A couple of times I have used it when there has been a decent promotional offer (decent for me is at least 20% off) and its 1 or 2 days before pay day. I have used it then and just pay a couple of days later. I make it work for me. BUT in my twenties I think I would have rinsed it. I like the app, it’s easy to pay and manage your account.

 

[They See Me Trolling...]

I used it yesterday as I wanted to buy something quite expensive and I’ve split it over three payments - it’s cheaper for me to do it that way than on my credit card. I will likely pay back early though as I generally have when I’ve got anything

 

[Halliestar]

I often use Klarna, sometimes I’ll use the pay within 30 days, other times I’ll use the slice it into three payment option on bigger orders. I’ve never had a problem with it, customer service has always been fantastic as well. Before you had the option to add on an extra ten days before you pay I’d sometimes contact them and say “I don’t get paid until this day is it ok if you add on some more days for me please” and they always would and again without any added interest. Also like others have said I like the idea of if I’m having to return something I’m not actually waiting on my own money to arrive back into my bank, it’s just Klarna cancelling the payment.

I’m trying not to use it as much though after I’ve paid this month off as when it comes to a new month some of my money will end up on Klarna payments so I’d then end up using Klarna again as I didn’t have enough this month to use my money on something. I’d rather have the cash and pay straight away but I’ll still use Klarna now and again.

My brothers been in debt before so I’ve always been careful and make sure I pay everything off when I should

 

[Itsallaboutmememe]

I’m torn with this
ive been in debt before-many years ago my ex ran up huge debts in my name and ducked off leaving me to deal with it
i can see why people use it to build credit scores up but all it takes is for someone to buy a few bits and then have no money left on payday-so they run up more debt just trying to make it to next payday
for some people it’s spending money you don’t have
used sensibly it’s a good idea-it’s when it’s not,that where the problems start
my stepdaughter has used it even tho she doesn’t have a job (she’s 18 in a few weeks) and her dad had to pay it off for her and she did it again so her mum paid it
if she does it again,then it’s tough-she can sort it out herself (not sure how she got the credit agreement as she is still 17)
i won’t touch it myself as I would go over any limits I lay down for myself and I don’t ever want to go back to the days of having two small kids,no money,baillffs knocking on the door and debt up to my eyeballs
if the cash is in my account/purse and I can see it going down,I know that once it’s gone it’s gone
with credit I’d just think ‘it’s only £10 I’ll pay it back next month’ and that’s where I’d come unstuck

 

[Bitofthebubbly]

I’ve used it a couple of times now with no issues. Only for more ‘big ticket’ items though like a new mattress and a bike for one of my kids which we could afford but it was just easier on the wallet to split it into 3 instalments.

With anything involving borrowing money you have to be responsible and not just take out credit because you can (learnt that the hard way with a credit card that I’m still paying off). I’d only ever use it to spread the cost of bigger items that we need. I think generally this is how these companies should be used. Sparingly and only when necessary. I can see how it can be open to misuse and people ending up in unmanageable amounts of debt though because its easy to set up and people can get drawn in with the interest free payments and before they know it they’re paying £200 a month to Klarna for the next 6 months. I don’t think the likes of Klarna should be banned but maybe they shouldn’t target their advertising towards the more vulnerable in society.

 

[littlepup]

I understand that people use it in different ways but I mean what it was designed for, I don’t like it. A credit card can be used to pay car insurance or your weekly shop but Klarna and the like are targeting fast fashion clothes shopping that very rarely does anyone ‘need’. If you can’t afford it this month, wait until next month. If you know you’re going to need a dress for New year or a wedding say, budget. Wanting a new dress for the weekend is not something worth getting into debt for and it shouldn’t be encouraged.
It encourages getting into debt for totally needless purchases and it’s irresponsible.

(Kids shoes, outfit for an interview, yes I can see the point of buying on credit but I still believe if you can’t afford it, don’t buy it, find an alternative. If you can’t even afford an alternative, you probably won’t be able to pay next month either)

 

[Velvet Hour]

I find Klarna really useful as I’m now in between sizes ( lockdown eating!) as I generally shop with ASOS I can order two sizes , choose the pay in 30 days option , keep the item that fits and send the other back with no charge to my card, no messing around with refunds to my bank. You can set a credit limit , however, I’m not sure I would have been so responsible back in my younger days so perhaps Klarna is not for everyone,