why it’s dangerous to buy now and pay later. Click the link and your heart will skip a beat: $120 for jeans? They are advertised as “the last pair of jeans you will ever buy”. Cholera. All right, solid writing.Here’s the problem. You’ve only got $30 left in your clothing budget, so you know to say ta-ta to these blue beauties now.

But wait a minute – what is that? Just below the Buy Now button it says something like “Make 4 interest-free payments of $30 with Klarna.” And you’re like, shit, yeah!I have $30 in my budget and will roll over the remaining three payments to next month’s budget, then one and then the next.

Watch out. i will keep you there Just because those installments are interest-free doesn’t mean it’s a smart move. Quickly forget the buy now button and hear me say buy now pay later is a great way to break broke now and later.

Klarna is not your friend and certainly will not help you get rich. So let me be your true friend and tell you how hard this type of service works to rake in as much of your salary as possible.

What is Klarna?
Klarna is a European bank. However, they are best known for their app, which lets you buy something instantly and pay for it over time.

This is just one of many installment plans (like Afterpay and Affirm) you’ve probably seen when shopping online that lure you into buying things you can’t afford right now, giving you more time to pay have.

Here’s a quick history lesson on who we’re dealing with: Klarna started its business in 2005 in Stockholm, Sweden, but its parent company, Klarna Group, wasn’t formed until 2014.1

Klarna states that it offers “free shopping”. offers its users “flexible payouts, full transparency and free bonuses”. I don’t know about you, but participating in monthly payments doesn’t feel like freedom to me. Do you know what he looks like?Credit card. And you know how I feel about her! Keep your distance as much as possible, like your mom told you to stay away from strangers on the playground.

How does Klarna work?
Klarna offers users several options.If you download their app you can shop online or even in person at partner stores and pay with the Klarna app to choose one of their payment options. Here’s a breakdown of the Buy Now, Pay Later offer:

Option 1: Pay in 4 parts. Split the purchase price into four interest-free installments with a 25% discount and pay the rest every two weeks.
Option 2: Pay within 30 days. Receive your items immediately and have 30 days to refund them.
Option 3: Loans from 6 to 24 months. For this “flexible financing” option, Klarna has partnered with WebBank, allowing you to split your bill into monthly payments over six months or up to two years.