Klarna: Buy Now, Pay Later. Good Idea?
Over the past few months, I've noticed that there's a new way to pay when shopping online. Klarna allows for 'smooth payments' and it makes 'buying and selling online simple.'
If you're not familiar with Klarna, it's a banking service that was founded in Stockholm in 2005. When you sign up, it allows you to shop now for products and pay later. You can split your purchases into three instalments, or you have up to 30 days to make the payment in full.
For example, if you're shopping on Beauty Bay, you could add around £150 of makeup into your basket and you don't have to pay for it now. You'd have up to 30 days to make the payment, or you could pay in instalments (so £50 each).
Now, for some people, Klarna seems like such a good idea. You wouldn't have to wait until payday to buy that eyeshadow palette you've had your eye one, or you can place an order on a few clothes, try them out and send back without worrying about the hassle of waiting to get your refund. You'd just pay what you owe.
Is Klarna a good idea?
So for some, Klarna seems like a good idea. And let's be honest: we live in a society where we're expected to have the 'buy now, pay later' mentality. There's so much pressure to have materialistic stuff in an instant and our 'worth' is based on the things we have.
But, I'm really dubious about this, From the moment I noticed Klarna as a payment method on shopping sites, I knew it wasn't for me.
Buy now, pay later
I think the problem with a service like Klarna is that it's so easy to fall into the depths of debt and get caught up in the terrible habit of sending above your means - and spending money you don't have.
I always believe that if you can't afford to buy something, then don't buy. Simple as. Ask yourself if you really want/need that item. If you really want it, then save up for it. I hate the thought of owing money to anyone or anything, especially when it's for something I really don't need. That's why I prefer to save my money instead of spending it.
Signing up for a service that allows you to buy now and pay later might be a good idea if you're on top of your finances. But it's a bad idea for the financially weak, or for those who easily succumb to the pressures that come with living in a highly commercialised society. And if you are the type of person who's always in the black, then do you really need Klarna?
I'm not telling you to avoid Klarna, but I'm not saying that you should sign up for it. I'm simply stating my opinion and saying one thing - be cautious.
Or better still: hold off from ordering your entire beauty wish list until payday rolls around and you've paid all your bills in the first instance.