Anyone used Klarna (or similar services)? Do you like it?

JustV

Lots of online shops now are offering an option to pay with Klarna, which lets you pay for something in installments over a period of time rather than paying the full price in one go.

It's a type of 'buy now pay later' thing - you might have seen other versions of that around. I know my aunt used to get kitchen stuff (washing machine etc) on plans like that.

Has anyone used Klarna or other flexible payment systems? What do you think about them?

Jellyelephant

I haven't used Klarna but I have used clearpay which is pretty much the same thing and while it was useful to spread payments over time I ended up getting myself in a bit of debt with it and couldn't pay it back. Im now blocked from it but yeah thats just my experience

sinead276

I get why it would be useful for bigger purchases and things like that, but I've personally never felt the need to use it.

I think I've always had the mentality of if I can't pay for it all now, I'm not in a position to buy it.

But maybe in the future when I have to buy bigger/more expensive things I will decide to use it

JustV

Jellyelephant wrote: »

I haven't used Klarna but I have used clearpay which is pretty much the same thing and while it was useful to spread payments over time I ended up getting myself in a bit of debt with it and couldn't pay it back. Im now blocked from it but yeah thats just my experience

I appreciate you saying this @Jellyelephant. These things can be so easy to slip down - I've had relatives and friends who have been caught in a similar way.

If you don't mind me asking, would you say you went into debt because clearpay makes it easy to spend money you don't have? Or for other reasons? (e.g. life stuff)

JustV

sinead276 wrote: »

I get why it would be useful for bigger purchases and things like that, but I've personally never felt the need to use it.

I think I've always had the mentality of if I can't pay for it all now, I'm not in a position to buy it.

But maybe in the future when I have to buy bigger/more expensive things I will decide to use it

I think quite a few people hold this opinion @sinead276! My dad was always like 'never get a credit card, your debit card is all you need'. I think I absorbed that from him.

It's interesting you say that thing about the future though because I've defo thought more about using credit since getting my own place and having those bigger purchases.

Jellyelephant

JustV wrote: »

Jellyelephant wrote: »

I haven't used Klarna but I have used clearpay which is pretty much the same thing and while it was useful to spread payments over time I ended up getting myself in a bit of debt with it and couldn't pay it back. Im now blocked from it but yeah thats just my experience

I appreciate you saying this @Jellyelephant. These things can be so easy to slip down - I've had relatives and friends who have been caught in a similar way.

If you don't mind me asking, would you say you went into debt because clearpay makes it easy to spend money you don't have? Or for other reasons? (e.g. life stuff)

I would say it's a mixture.... but definitely made it easier to spend money I didn't have. I had good intentions when using it, thinking I'd pay it when I next got money.... however life got in the way and I couldn't always follow through with my intentions and that's when I started to lose control of it in a way.

JustV

I feel that @Jellyelephant. When you have other pressures in life it's so easy to lose control of your money in that way you described. I appreciate you explaining - interesting stuff.

independent_

I have used it but i don’t necessarily like it. I have a monzo account so I have used their version of it. It is handy for big purchases, but it depends on the interest rate. You get more protection using a credit card with big purchases but the interest rate is often much higher so it really depends. My sister however uses it constantly and keeps getting herself into debt but won’t stop using it (all because sh wants something right now and can’t wait until she gets paid)

JustV

Thanks for your take @independent_! With your sister, do you think the buy now pay later system is the cause of her spending or something that exacerbates it?

Also (if you know the answer to this!) do you know if your sister has reached out to anyone for help around her financial trouble? Also wondering if you did @Jellyelephant?