So Klarna - paying in 3-4 interest free instalments are a problem but almost all UK banks introducing 39,9% interests on their debit cards (all at the same time 2-3 years ago) are not? Seems like a hit piece.
Both need to be addressed. If one has a potentially worse outcome it doesn't mean the other is not also bad. If the younger generation is using BNPL and wracking up debt instead of going into their overdrafts, it's only marginally better. There is something sinister about a BNPL company using 'relatability' and flashy marketing to draw young and vulnerable people (people with lower incomes) in. We had the same issues with pay day loans before they were regulated. It's also about the bad habbits it creates and sense of shame, not just the immediate debt accumulated. Also they're not interest free, you have to pay penalties eventually.
Sorry, but why are people upset that you are penalized for late payments? That's no different than any credit card, except they don't charge interest, which is great. These services increase your buying power without committing you to a long-term repayment contract or revolving credit line. You still have to provide some financial info to demonstrate you are capable of making the payments. This report is the worst sort of pointless hand-wringing.
If you can't afford an item in the first place then your playing a zero sum game. It would be better to save your money in bite sized amounts over a longer period in order to afford the item you want.
And they'll die soon enough because they can't offer zero interest forever when central banks are moving rates to 5%+ or more. There's no business case where you can offer zero interest in a high interest rate environment, and make money from just late fees and merchant fees.
@@Avantime But let's say that they find their way to huge retail platforms and become first choice for many, then there's much more investor value there for them when they decide to try a different approach with modest interest rates. Let's not forget there's late payment fees, and longer financing at 20% APR
I agree with the comments - as with everything money-related, we'll always hear about irresponsible people going bankrupt due to their bad decisions. But just like with guns, ultimately it's still the person pulling the trigger that's responsible for the outcome, not the tool itself. We have to educate those at risk, not restrict the system for everyone else that can benefit from it.
Klarna is great. It's a great way to manage money for large expenses which can start at £30 for some. It is still debt and people should be capable of deciding for themselves if they can pay for it.
Sorry, but I use Klarna all the time (even to pay for my groceries) and have had NO problems at all. It's almost like the big credit card companies are afraid to lose the ability to charge customers 37% interest, when everyone's paying no interest on Klarna.
Tbh, even credit cards, when used sensibly, are brilliant. Better purchase protection, incentives like flight points, and setting your credit file up better for a big purchase like a house.
I think a big part of being smart about buy now pay later is to only make a purchase you know you can pay back. That's what I do and I haven't been in a bad situation.
If you dont have the money dont buy it, and heard that some people downloads the apps buy what they want and deleted the app think that they dont need to pay idk if it is true or not.
Klarna has helped me improve my credit rating immensely. You can set limits, it doesn't rack up if you miss a payment, making it unaffordable and it's helped me be able to afford Christmas this year, whereas I wouldn't have without it. It's a fantastic idea. Seems like the banks are upset they're losing out to a company that's providing a reasonable option
I was comparison shopping for an item I knew I wanted and would buy outright and nearly every single website I found the item on tried to push Klarna as the payment method, it was creepy.
Just set limits on your spending... also, how many finance products out there offer 0% interest? Don't borrow what you can't afford in the first place. Check your bank account, make sure you'll have the money comfortably for the due dates... adults can handle this with discipline. If you don't trust yourself, don't sign the deal.
If these are "regulated" then the interest rates will sky rocket so they can keep paying tax. And the cycle begins again, helping no one. If people want to use them, use them. If not, then don't. Time to stop being a nanny state.
Everything is fine with Klarna, but to return an item you will have to update on Klarna app & also if you've paid shipment charges, it's a pain process to explain Klarna as they will ask for details of shipment returned like reference no. etc online, which you should have it handy to update the return status on Klarna. By mistake if you tap on Item as delivered which just returned, there is no option to revert, that's it's you're done..once again you will have to explain to Klarla. The return process could be made much easier process & better. 🙄
Yeah the returns are difficult to navigate. You have to be the middle man for klarna and the seller and iron out the kinks yourself. It gets too complicated
With today's wrapped in cotton wool society you've got to be clearer than crystal clear...and then tell them again and again. And then force them to read the small print until they can recite it from memory... And sign it with their life.
So Klarna - paying in 3-4 interest free instalments are a problem but almost all UK banks introducing 39,9% interests on their debit cards (all at the same time 2-3 years ago) are not? Seems like a hit piece.
Think you've hit the nail on the head there
Both need to be addressed. If one has a potentially worse outcome it doesn't mean the other is not also bad. If the younger generation is using BNPL and wracking up debt instead of going into their overdrafts, it's only marginally better. There is something sinister about a BNPL company using 'relatability' and flashy marketing to draw young and vulnerable people (people with lower incomes) in. We had the same issues with pay day loans before they were regulated. It's also about the bad habbits it creates and sense of shame, not just the immediate debt accumulated.
Also they're not interest free, you have to pay penalties eventually.
People need to understand anything that’s made and not from the government isn’t always bs 😂 life all personal preference do what you wanna do
Please my fellow consumers, I stress that you buy what you know you can afford especially in such an unstable economic climate.
Sorry, but why are people upset that you are penalized for late payments? That's no different than any credit card, except they don't charge interest, which is great. These services increase your buying power without committing you to a long-term repayment contract or revolving credit line. You still have to provide some financial info to demonstrate you are capable of making the payments.
This report is the worst sort of pointless hand-wringing.
I just finished paying for a laptop in 3 installments through Klarna. No additional interst fee.
I don't see what the problem is.
@quwipyui6519 huh?
@vi2829hj Lol are you high? 😂😂😂
If you can't afford an item in the first place then your playing a zero sum game. It would be better to save your money in bite sized amounts over a longer period in order to afford the item you want.
I've been using Klarna for many years as well as credit cards with no problems. If you can't handle buying on credit then don't.
Klarna is like Wonga without the crazy interest rates. It's actually great
And they'll die soon enough because they can't offer zero interest forever when central banks are moving rates to 5%+ or more. There's no business case where you can offer zero interest in a high interest rate environment, and make money from just late fees and merchant fees.
@@Avantime But let's say that they find their way to huge retail platforms and become first choice for many, then there's much more investor value there for them when they decide to try a different approach with modest interest rates.
Let's not forget there's late payment fees, and longer financing at 20% APR
I've been using klarna and have had no issues. Love it 😀
I agree with the comments - as with everything money-related, we'll always hear about irresponsible people going bankrupt due to their bad decisions. But just like with guns, ultimately it's still the person pulling the trigger that's responsible for the outcome, not the tool itself. We have to educate those at risk, not restrict the system for everyone else that can benefit from it.
Love Klarna! Just like with anything in life, it's up to individuals to educate themselves and thus use service/products responsibly
Klarna is great. It's a great way to manage money for large expenses which can start at £30 for some. It is still debt and people should be capable of deciding for themselves if they can pay for it.
£ ? ⬅️ The moment I forgot that YT is worldwide.
Bruh for the average person this app is better than having to pay crazy rates so what's wrong with this app
Like credit cards and banks then...?
Sorry, but I use Klarna all the time (even to pay for my groceries) and have had NO problems at all. It's almost like the big credit card companies are afraid to lose the ability to charge customers 37% interest, when everyone's paying no interest on Klarna.
I got my Xbox via them...the terms was clear.
Crazy to paint them different as credit card etc.
Tbh, even credit cards, when used sensibly, are brilliant. Better purchase protection, incentives like flight points, and setting your credit file up better for a big purchase like a house.
Leave Klarna alone… ffs
I think a big part of being smart about buy now pay later is to only make a purchase you know you can pay back. That's what I do and I haven't been in a bad situation.
Yes and I'm sure everyone will always remember to buy only what they can afford to pay back😅
Never been use it , don’t like debt
Wait...is channel 4 pissed because people don't read?
If you dont have the money dont buy it, and heard that some people downloads the apps buy what they want and deleted the app think that they dont need to pay idk if it is true or not.
You need to shop responsibly. Do the math before making purchases with Klarna.
Klarna has helped me improve my credit rating immensely. You can set limits, it doesn't rack up if you miss a payment, making it unaffordable and it's helped me be able to afford Christmas this year, whereas I wouldn't have without it. It's a fantastic idea. Seems like the banks are upset they're losing out to a company that's providing a reasonable option
I was comparison shopping for an item I knew I wanted and would buy outright and nearly every single website I found the item on tried to push Klarna as the payment method, it was creepy.
Why should people buy something they can’t afford ? Crazy man!
Just set limits on your spending... also, how many finance products out there offer 0% interest? Don't borrow what you can't afford in the first place. Check your bank account, make sure you'll have the money comfortably for the due dates... adults can handle this with discipline. If you don't trust yourself, don't sign the deal.
If these are "regulated" then the interest rates will sky rocket so they can keep paying tax. And the cycle begins again, helping no one. If people want to use them, use them. If not, then don't. Time to stop being a nanny state.
Nanny state is not a thing. It's some ridiculous term coined by the Spectator and used by old school tories.
@@werewolfcountry what do you mean it's not a thing, if governments are levying a sin tax on alcohol is that not nannying?
Love Klarna
Everything is fine with Klarna, but to return an item you will have to update on Klarna app & also if you've paid shipment charges, it's a pain process to explain Klarna as they will ask for details of shipment returned like reference no. etc online, which you should have it handy to update the return status on Klarna. By mistake if you tap on Item as delivered which just returned, there is no option to revert, that's it's you're done..once again you will have to explain to Klarla. The return process could be made much easier process & better. 🙄
Yeah the returns are difficult to navigate. You have to be the middle man for klarna and the seller and iron out the kinks yourself. It gets too complicated
Bottom feeders leave the youth alone 😔...
Does "safeguards" mean not for everyone?
Spread the cost of an xbox series S with ultimate for £250+ more than purchasing with cash...
With today's wrapped in cotton wool society you've got to be clearer than crystal clear...and then tell them again and again. And then force them to read the small print until they can recite it from memory... And sign it with their life.
Strange seeing all the comments massively supportive
Klarna -> Karma
The future is called EU
😮
*My life is totally changed because I've been earning $43k returns from my $9,500 investment*
scam artists