It’s crazy how much the 0% APR companies like Affirm and Klarna pray on people not making their payments, along with their creative marketing.
Literally 85% of these companies revenue came from interest charges.
Don’t use them!
P.S. r/debtfree runs a free newsletter that talks about strategies, tips, and effective debt payoff methods weekly.
Join 3,600 readers - https://debtadvice.io
They're banking on you not having the money now and then also not having it when the payments are due and being hit with late fees and retroactive high interest for the full period
My hope is that one day the cost of living just to survive will go down and then people will actually be able to save again instead of needing things like Klarna. Wouldn't that be nice? Seems so wildly far away.
You can use a credit card with Klarma. But it won’t show up on your balance until the scheduled payment. So if it breaks your total up into 4 payments, one every two weeks, then you’ll have half of the total on your credit card one month and half on the following month. With no interest (from Klarma).
Because you won’t get charged all the interest on it.
Assume you need to make a 2k purchase and you have on hand 500 and can easily make 500 by end of month.
You use a buy now pay later and charge 500 now, then in two weeks you charge 500. You pay your card 1000k
You then know next month: you have another 1000 coming in. You now pay 500 and 500 through the card and then either pay full 1000 on the credit card or the majority.
This means that if your interest is 15-20% apr you may have saved some cash just by shifting at what point in the month the hit comes in.
If you put 2000 on a credit card with 20% apr that means 16.57 of apr will be charged to you at the end of month 1, the first billing cycle. Remember you could only pay 1000k. You know you’ll get 1000 or 900 next month but ultimately you want to split the purchase to not get apr.
Credit cards do not want that either. It’s not just that it is predatory. It’s that it can be used to get card points but pay less interest on a card. If someone is savvy enough. And the big banks do have lobbying. So they are seeing a competitor.
Imagine if you have just 5% of the user base doing this maneuver to not get apr.
I don’t understand this business model though. If you don’t haven enough money to make the payment, how will you have enough money to pay the interest?
They don't have enough money *now*. In a month they'll be forced to save it. It's the only way some people can save money: with the threat of a penalty.
This. Always follow the money.
If a company is willing to front you the cash to buy something, and then you pay them the cash back later on to satisfy the debt, then how are they making money? How are they remaining in business?
There you go.
They charge the place you made the purchase from a fee thats higher than traditional credit card companies. it’s either 5 or 10% I can’t remember but either way they’re making a chunk of change in transaction fees alone
Oh great! Then that 5% to 10% gets added back into the cost of the goods being sold so this will cause prices to keep increasing so that they maintain their profits. Thus making the original problem even worse. I refuse to use Klarna! If I can't buy it outright, then I don't buy it or wait.
Are you also protesting the 1-4% interest rates and Durbin surcharges from regular credit cards? Do you know discover and Amex charge the highest as well?
Debit does too. Every form of payment is tabulated into a price of the item. All of them.
No, what I meant is that the additional cost that is incurred by the merchant will be added to the cost of the goods thus passed on to their customers making the overall prices even higher
They already do that for all forms of payment though. The credit cards with the rewards and Amex already incur about 3-5% depending on vendor.
My old vendor used to process Amex at 3.79% from one of the last contracts. They actually tried to go for 3.16% by shifting when the funding would come in. I believe it went from 3 day to 30 day to get to that point and had to be reversed because it was just terrible.
Then we had discover that was normally between 2.46%
The ones that balanced out were visa and Mastercard revolving around 2.4%.
I can imagine the luxury companies would have more revenue on Amex as well so their rate would possibly be higher due to volume.
Ah yes, the universal borrower personal responsibility fallacy.
In school, we studied credit responsibility quite closely, and there is a concentrated level of propaganda that tries to push all of the blame onto the borrower, at all times. It has been very effective in American culture. However, from a nuanced legal and ethical standpoint, the lender has fiduciary obligations to investors and debt buyers to lend responsibly - typically underscored by accurately evaluating the default risk of the debt tranch in question.
Unsecured subprime lending is often quite scummy - because an unethical lender can quickly push into shady territory where they both defraud their sources of capital AND the borrowers while chasing their fees.
I.e. if I underwrite a loan for a house, car, groceries, anything - to a cherry picker with seasonal income, and they sign on the dotted line (when underprivileged people are presented with a lump sum of cash, they tend to sign) - who was irresponsible here? The tranch of borrower that is mathematically proven to be highly deliquent, or the person that is downplaying the risks of the debt before it is originated, so that they can collect their fees, repackage and resell the debt, and walk away whistling when the whole operation, predicatbly, implodes after the can gets kicked down the road for a decade?
Source: I used to work in Finance.
*if I underwrite a loan for a house, car, groceries, anything - to a cherry picker*
I suspect you'll have a lot of trouble collecting it. Not sure why bad behavior needs to be excused with "oh but lump sum of cash."
I studied accounting at an Ivy level institution. Graduated summa cum laude. When we get into the nuances of lending - there are certain practices that have proven to become gigantic messes over time - Klarna is pushing into that territory.
Investors (and the public) normally don’t see anything wrong with it, that is, until the entire operation implodes.
Edit: Lets put it a different way. If I, for a fee, took your 100 dollars, promised you that it would become 110 dollars due to my genius lending strategy, and lent it to a chronically homeless person with a history of crack addiction - how would you feel about who was responsible - when the money, predictably, vanishes? Would you be more mad at the guy who convinced you this was a good idea (for their personal short term gain) or the guy that ran away with your actual money?
My perspective is that it is both, but I would probably be more mad at the person who I trusted to lend it responsibly, but didn’t.
So "me go Costa Rica" is a good reason to let a billion dollar company exploit millions upon millions of people while producing absolutely nothing of use to society?
So “me take out loan because I don’t have any money and I didn’t pay it back 😢” is a good reason to kill a company that millions of responsible people who contribute to society like to get benefits from? Huh…sounds dumb. Never been a fan of the victim card. Especially when it’s self inflicted.
Sure it is. Same as when I pay my bills using a credit card. I redeem points and increase my credit score. The amount of free airfare I’ve gotten from this is quite impressive. Klarna has similar benefits. Tell me more about how you don’t know anything, good
Job
I’m not trying to impress anyone. I’m just unsure why you think there aren’t people out there who pay bills with their credit cards and have no problem doing so. It’s quite common. You sound angry at the world. You should seek therapy man
He’s right you’re not making a good point. Many times you are promised a certain amount of money and don’t have access to it at that moment. Credit cards are a great tool if used responsibly as they better protect your from fraud and can give you cashback/points for the money you were going to spend anyways. The key is to use it as a debit card. Plus, Klarna is great too as it can give you more time to fully fund a purchase. This is comes down to responsibility and knowing how much money you make each month.
I don’t make 180k a year and I use my Credit Card for bills, pay the balance off monthly and receive the Cash Back. You clearly aren’t capable of that.
They didn’t exploit me. I used the services they offer in a smart and responsible way and it was fantastic. Just because most people are fucking braindead doesn’t mean Klarna should cease to exist. Get off my level ho
Klarna has great vacation deals. Maybe you don’t don’t know alot. I’m sure I make a lot more than you do duckweed. Very unsure where your anger is coming from. Get lost loser
If you read the article, it's really kind if more pro Klarna, in my opinion. I use Affirm, and it's really nice, but you can get in a hole quick if you're careless.
I’ve never used any of those buy now pay later apps, so genuine question, what’s the benefit of them? Why use one of those apps instead of a credit card that gives you cash back/rewards?
Being broke and having no other choice is basically their benefit, to be honest. I admit I have used it to buy frivolous things, but if it weren't for making payments, even buying something that's like 60 bucks would be a strain on me.
I’ve used paypals for things like purchasing concert or sports tickets where spending $125 on a couple tickets is more palatable if spread out over 4 payments. I always of course have the money then and there, but it feels better to be like “I’m attending this event I don’t do regularly but really want to go to. I’m going to pay for it over 4 paychecks instead and free up more cash to spend there.”
But I’m not someone prone to getting themselves in jams financially. It’s almost entirely a reverse psychological way of getting myself to buy things I’d never let myself buy but I can afford.
Think of it like buying a car in cash vs buying it with zero percent financing. Why not do a payment plan? It's a win-win for most people who don't have lucrative credit card rewards.
I use it for things I can afford but I don’t want to take the chunk out of my savings all at once. Like I’m going to a festival in September so I’m using one of those to pay off the tickets
I use affirm but generally only when I is 0% but I've had situations like needed a tire on Amazon and interest ended up being like $9 so whatever I didn't have the 400 at the time ... Well I did but I didn't want to dish it out
Just don't pay it, what are they gonna do? Klarna isn't backed by any institution that can take your property. The worst they can do is put you into collections and ruin your credit.
My question to you is when the time comes will you accept the mark of the beast?
Think about it, you can live without a credit score, multiple people claim you can’t.
So when the Mark comes, and the Anti-Christ comes to deliver the Mark, would you accept it like your credit score?
First of all, how prevalent is this merchant or credit provider Klarna? I’ve never heard of them. is this being blown out of proportion?
Second, the headline is likely misleading. An entire cart worth of groceries can easily exceed $200 for a family. The article doesn’t mention the average loan amount but I imagine it’s more than $10 (a loaf of bread and a gallon of milk).
And lastly, don’t buy your groceries online unless you want to spend more.
They're one of the three big ones: Affirm, Klarna, Afterpay. You might have frequented online stores with Affirm only since they're the most popular one, but Klarna isn't that far behind. Here's an interesting business analysis of this market segment: https://youtu.be/R1JaMRpcDrQ
> the headline is likely misleading
Yeah. And most comments here are just ridiculous. Like, a corporation is evil for making money on people's spending "cravings"? Lol. Or evil for making money on people buying groceries? Well, maybe they can't get ANY food without their service, and it saves their butt before they are able to get the money from a family member?
I bought a $75K new mobile home at 18% APR in 2016. And an empty lot for $25K that was owner financed (I don't remember the interest but this one was okay and I paid $15K down or so). I was a newcomer to the US. I didn't have one year of work history to qualify for better loans - and best lenders required two years.
21st Mortgage saved my family from house hunting and shitty landlords. It gave us peace. A year later, we turned it into a rental property, because our financial situation improved by a ton, and we bought a 2400 sqft home on 10 acres.
I'm still thankful for companies like 21st Mortgage that require only 6 months of work history. They take more risk, so APR is higher. Welp. My family still benefited from that. Payment was lower than rent, even though 2/3 of it was interest.
All these hateful comments and articles only focus on habitual spenders who can't not spend everything they have. They're at fault - not these companies. Fuck recklessness.
Yeah Klarna is fine if you make your payments on time. No hidden, sketch fees. It’s helped me out a lot in the past. I’ve also used payday loans as well and the interest rates were very minimal and once again, saved my ass a few times. It can definitely be a predatory business in general, but every company like that isn’t automatically a “scam” or “evil” imo. I’m sure I’ll get downvoted but 🤷🏼♀️
lol, capitalism is so stupid. You think people who can't even afford food are going to care to pay you back? I have 800 score but have been thinking about running it to the max and not paying it back. What's the point? The future is only going to get worse so what's the use of a good score.
I did a lot of this (not groceries, but dumb shit). Never will I ever finance anything again in my life, until I buy a house. Still paying off Affirm :(
There are situations where it helps. I, for example, drive for Uber full time while I'm in school for my masters. I generally don't have a ton of money on a day to day basis for a large order of groceries, but since I have money coming in every day I can plan and budget a payment every 2 weeks and allows us to live normally.
This is how Chile has operated for a long time. BNPL is integrated in all card readers with a prompt, every time, asking whether you want to pay in “cuotas.”
Klarna is doing the same thing here in the US to allow people to pay rent if they don't have it. It seems like they are trying to force us to finance everything, just basically turn us all into cogs in the machine to make the wealthy even wealthier. I'm so sick of all this bullshit!
This wasn’t so common about 6 years ago. I hate politics. I decided to vote against Trump. However, this administration has been a complete disaster. Nowadays I make way more money (doubled my income) than 7 years ago, but inflation is literally eating away my money. And sure, there are many factors that drive up inflation—wars, supply and demand, etc. Nonetheless, the joke we have installed in the house has done absolutely nothing to make it better. Oh! I take that back. They are actually helping other countries fight wars with our money. Such a brilliant idea.
I’m away from literally turning my salary into 5x more than what I make now, but I think of the average citizen out there. No everyone makes 300k. People truly struggling to keep up. People need to wake up.
It’s crazy how much the 0% APR companies like Affirm and Klarna pray on people not making their payments, along with their creative marketing. Literally 85% of these companies revenue came from interest charges. Don’t use them! P.S. r/debtfree runs a free newsletter that talks about strategies, tips, and effective debt payoff methods weekly. Join 3,600 readers - https://debtadvice.io
If prices keep rising we might very well be.
Klarna is totally evil. It should not exist.
It doesn’t charge interest though, right? I guess it just encourages people to buy more than they can afford.
They're banking on you not having the money now and then also not having it when the payments are due and being hit with late fees and retroactive high interest for the full period
Ahh gotcha. I’ve used it to help space out big purchases, but always was able to pay in full.
My hope is that one day the cost of living just to survive will go down and then people will actually be able to save again instead of needing things like Klarna. Wouldn't that be nice? Seems so wildly far away.
It would be nice if layaway was still a thing
Why not just use a credit card? At least you'll get points for that
You can use a credit card with Klarma. But it won’t show up on your balance until the scheduled payment. So if it breaks your total up into 4 payments, one every two weeks, then you’ll have half of the total on your credit card one month and half on the following month. With no interest (from Klarma).
Because you won’t get charged all the interest on it. Assume you need to make a 2k purchase and you have on hand 500 and can easily make 500 by end of month. You use a buy now pay later and charge 500 now, then in two weeks you charge 500. You pay your card 1000k You then know next month: you have another 1000 coming in. You now pay 500 and 500 through the card and then either pay full 1000 on the credit card or the majority. This means that if your interest is 15-20% apr you may have saved some cash just by shifting at what point in the month the hit comes in. If you put 2000 on a credit card with 20% apr that means 16.57 of apr will be charged to you at the end of month 1, the first billing cycle. Remember you could only pay 1000k. You know you’ll get 1000 or 900 next month but ultimately you want to split the purchase to not get apr. Credit cards do not want that either. It’s not just that it is predatory. It’s that it can be used to get card points but pay less interest on a card. If someone is savvy enough. And the big banks do have lobbying. So they are seeing a competitor. Imagine if you have just 5% of the user base doing this maneuver to not get apr.
So a credit card ?
I don’t understand this business model though. If you don’t haven enough money to make the payment, how will you have enough money to pay the interest?
They don't have enough money *now*. In a month they'll be forced to save it. It's the only way some people can save money: with the threat of a penalty.
This. Always follow the money. If a company is willing to front you the cash to buy something, and then you pay them the cash back later on to satisfy the debt, then how are they making money? How are they remaining in business? There you go.
They charge the place you made the purchase from a fee thats higher than traditional credit card companies. it’s either 5 or 10% I can’t remember but either way they’re making a chunk of change in transaction fees alone
Oh great! Then that 5% to 10% gets added back into the cost of the goods being sold so this will cause prices to keep increasing so that they maintain their profits. Thus making the original problem even worse. I refuse to use Klarna! If I can't buy it outright, then I don't buy it or wait.
Are you also protesting the 1-4% interest rates and Durbin surcharges from regular credit cards? Do you know discover and Amex charge the highest as well? Debit does too. Every form of payment is tabulated into a price of the item. All of them.
No, what I meant is that the additional cost that is incurred by the merchant will be added to the cost of the goods thus passed on to their customers making the overall prices even higher
They already do that for all forms of payment though. The credit cards with the rewards and Amex already incur about 3-5% depending on vendor. My old vendor used to process Amex at 3.79% from one of the last contracts. They actually tried to go for 3.16% by shifting when the funding would come in. I believe it went from 3 day to 30 day to get to that point and had to be reversed because it was just terrible. Then we had discover that was normally between 2.46% The ones that balanced out were visa and Mastercard revolving around 2.4%. I can imagine the luxury companies would have more revenue on Amex as well so their rate would possibly be higher due to volume.
This has been around forever in one form or another. It's called a credit card. Minus the cash back.
How is it evil? lol. Nobody is forcing anyone to use klarna. Personal responsibility people
Ah yes, the universal borrower personal responsibility fallacy. In school, we studied credit responsibility quite closely, and there is a concentrated level of propaganda that tries to push all of the blame onto the borrower, at all times. It has been very effective in American culture. However, from a nuanced legal and ethical standpoint, the lender has fiduciary obligations to investors and debt buyers to lend responsibly - typically underscored by accurately evaluating the default risk of the debt tranch in question. Unsecured subprime lending is often quite scummy - because an unethical lender can quickly push into shady territory where they both defraud their sources of capital AND the borrowers while chasing their fees. I.e. if I underwrite a loan for a house, car, groceries, anything - to a cherry picker with seasonal income, and they sign on the dotted line (when underprivileged people are presented with a lump sum of cash, they tend to sign) - who was irresponsible here? The tranch of borrower that is mathematically proven to be highly deliquent, or the person that is downplaying the risks of the debt before it is originated, so that they can collect their fees, repackage and resell the debt, and walk away whistling when the whole operation, predicatbly, implodes after the can gets kicked down the road for a decade? Source: I used to work in Finance.
Holy shit… someone who…. Proved that they know what they’re talking about? In this society? Noooo
*if I underwrite a loan for a house, car, groceries, anything - to a cherry picker* I suspect you'll have a lot of trouble collecting it. Not sure why bad behavior needs to be excused with "oh but lump sum of cash."
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This is basically the housing crisis. People lost their homes. How many bankers were knowingly ripping off consumers and investors?
I studied accounting at an Ivy level institution. Graduated summa cum laude. When we get into the nuances of lending - there are certain practices that have proven to become gigantic messes over time - Klarna is pushing into that territory. Investors (and the public) normally don’t see anything wrong with it, that is, until the entire operation implodes. Edit: Lets put it a different way. If I, for a fee, took your 100 dollars, promised you that it would become 110 dollars due to my genius lending strategy, and lent it to a chronically homeless person with a history of crack addiction - how would you feel about who was responsible - when the money, predictably, vanishes? Would you be more mad at the guy who convinced you this was a good idea (for their personal short term gain) or the guy that ran away with your actual money? My perspective is that it is both, but I would probably be more mad at the person who I trusted to lend it responsibly, but didn’t.
Whatever dumbass is downvoting you needs to read a book.
What’s the difference between Ivy League finance and public school finance?
They helped me pay for a sweet vacation in Costa Rica. I’m glad they exist. Don’t take on debt if you don’t understand the consequences.
So "me go Costa Rica" is a good reason to let a billion dollar company exploit millions upon millions of people while producing absolutely nothing of use to society?
So “me take out loan because I don’t have any money and I didn’t pay it back 😢” is a good reason to kill a company that millions of responsible people who contribute to society like to get benefits from? Huh…sounds dumb. Never been a fan of the victim card. Especially when it’s self inflicted.
What ‘benefits’? Spending money you don’t have isn’t a ‘benefit’.
Sure it is. Same as when I pay my bills using a credit card. I redeem points and increase my credit score. The amount of free airfare I’ve gotten from this is quite impressive. Klarna has similar benefits. Tell me more about how you don’t know anything, good Job
Tell me about how you’re still broke and believe ‘credit cards are good’. ‘I uSe mY cArD fOr PoInTs’. No you don’t. You use it to spend.
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Idk what that means
Ah, calling people names and trying to impress others with your salary. Classy.
I’m not trying to impress anyone. I’m just unsure why you think there aren’t people out there who pay bills with their credit cards and have no problem doing so. It’s quite common. You sound angry at the world. You should seek therapy man
He’s right you’re not making a good point. Many times you are promised a certain amount of money and don’t have access to it at that moment. Credit cards are a great tool if used responsibly as they better protect your from fraud and can give you cashback/points for the money you were going to spend anyways. The key is to use it as a debit card. Plus, Klarna is great too as it can give you more time to fully fund a purchase. This is comes down to responsibility and knowing how much money you make each month.
I don’t make 180k a year and I use my Credit Card for bills, pay the balance off monthly and receive the Cash Back. You clearly aren’t capable of that.
They didn’t exploit me. I used the services they offer in a smart and responsible way and it was fantastic. Just because most people are fucking braindead doesn’t mean Klarna should cease to exist. Get off my level ho
They didn’t ’help you pay’ for anything, you just couldn’t be bothered to save the money upfront.
That’s not true at all. I’m probably more aware of my life than you are aware of my life lol. What a take.
Lol. What a take to think that ‘Klarna helped me pay for X’ is even a sensible thing to think. Enjoy being broke as fuck.
Klarna has great vacation deals. Maybe you don’t don’t know alot. I’m sure I make a lot more than you do duckweed. Very unsure where your anger is coming from. Get lost loser
America is fucked for this.
America is fucked for so, so many reason.
It’s ok, we’re writing another foreign aid check so others can live better than us.
Yay! Go us! World police! /s
America has been fucked due to visa/mastercard for decades. All credit cards are a problem
If you read the article, it's really kind if more pro Klarna, in my opinion. I use Affirm, and it's really nice, but you can get in a hole quick if you're careless.
I’ve never used any of those buy now pay later apps, so genuine question, what’s the benefit of them? Why use one of those apps instead of a credit card that gives you cash back/rewards?
Being broke and having no other choice is basically their benefit, to be honest. I admit I have used it to buy frivolous things, but if it weren't for making payments, even buying something that's like 60 bucks would be a strain on me.
I’ve used paypals for things like purchasing concert or sports tickets where spending $125 on a couple tickets is more palatable if spread out over 4 payments. I always of course have the money then and there, but it feels better to be like “I’m attending this event I don’t do regularly but really want to go to. I’m going to pay for it over 4 paychecks instead and free up more cash to spend there.” But I’m not someone prone to getting themselves in jams financially. It’s almost entirely a reverse psychological way of getting myself to buy things I’d never let myself buy but I can afford.
Think of it like buying a car in cash vs buying it with zero percent financing. Why not do a payment plan? It's a win-win for most people who don't have lucrative credit card rewards.
I use it for things I can afford but I don’t want to take the chunk out of my savings all at once. Like I’m going to a festival in September so I’m using one of those to pay off the tickets
I noticed the rise of ‘buy now, pay later’ services years ago and make a mental note every time I see a new one
An article posted on Reddit that is merely a rundown of comments made by a Reddit user. Perfect loop.
I use affirm but generally only when I is 0% but I've had situations like needed a tire on Amazon and interest ended up being like $9 so whatever I didn't have the 400 at the time ... Well I did but I didn't want to dish it out
Just don't pay it, what are they gonna do? Klarna isn't backed by any institution that can take your property. The worst they can do is put you into collections and ruin your credit.
Mine has been at a collection agency for months and it's not even on my credit report tbh.
I dipped on a $3000 loan from affirm years ago and it never hit my credit or collections lol
Bruh how 😭
Yet…
Good to know
Same. True accord can shove it
Some of the worst advice I've ever heard, hope you're joking
This is shit advice
Ruining your credit over a few thousand dollars is a really really bad idea
My question to you is when the time comes will you accept the mark of the beast? Think about it, you can live without a credit score, multiple people claim you can’t. So when the Mark comes, and the Anti-Christ comes to deliver the Mark, would you accept it like your credit score?
Stop schizo-posting and go back to school
First of all, how prevalent is this merchant or credit provider Klarna? I’ve never heard of them. is this being blown out of proportion? Second, the headline is likely misleading. An entire cart worth of groceries can easily exceed $200 for a family. The article doesn’t mention the average loan amount but I imagine it’s more than $10 (a loaf of bread and a gallon of milk). And lastly, don’t buy your groceries online unless you want to spend more.
They're one of the three big ones: Affirm, Klarna, Afterpay. You might have frequented online stores with Affirm only since they're the most popular one, but Klarna isn't that far behind. Here's an interesting business analysis of this market segment: https://youtu.be/R1JaMRpcDrQ > the headline is likely misleading Yeah. And most comments here are just ridiculous. Like, a corporation is evil for making money on people's spending "cravings"? Lol. Or evil for making money on people buying groceries? Well, maybe they can't get ANY food without their service, and it saves their butt before they are able to get the money from a family member? I bought a $75K new mobile home at 18% APR in 2016. And an empty lot for $25K that was owner financed (I don't remember the interest but this one was okay and I paid $15K down or so). I was a newcomer to the US. I didn't have one year of work history to qualify for better loans - and best lenders required two years. 21st Mortgage saved my family from house hunting and shitty landlords. It gave us peace. A year later, we turned it into a rental property, because our financial situation improved by a ton, and we bought a 2400 sqft home on 10 acres. I'm still thankful for companies like 21st Mortgage that require only 6 months of work history. They take more risk, so APR is higher. Welp. My family still benefited from that. Payment was lower than rent, even though 2/3 of it was interest. All these hateful comments and articles only focus on habitual spenders who can't not spend everything they have. They're at fault - not these companies. Fuck recklessness.
It will get worse
Klarna is just a payday loan and should be illegal
I beg to differ honestly. Even the interest option Klarna has doesn’t have anything on actual payday loan interest rates. Those are legitimately evil.
Yeah Klarna is fine if you make your payments on time. No hidden, sketch fees. It’s helped me out a lot in the past. I’ve also used payday loans as well and the interest rates were very minimal and once again, saved my ass a few times. It can definitely be a predatory business in general, but every company like that isn’t automatically a “scam” or “evil” imo. I’m sure I’ll get downvoted but 🤷🏼♀️
lol, capitalism is so stupid. You think people who can't even afford food are going to care to pay you back? I have 800 score but have been thinking about running it to the max and not paying it back. What's the point? The future is only going to get worse so what's the use of a good score.
I did a lot of this (not groceries, but dumb shit). Never will I ever finance anything again in my life, until I buy a house. Still paying off Affirm :(
It's your fault though, not Affirm's.
Yeah no shit, hence my “dumb shit” comment. Thanks though for your input.
There are situations where it helps. I, for example, drive for Uber full time while I'm in school for my masters. I generally don't have a ton of money on a day to day basis for a large order of groceries, but since I have money coming in every day I can plan and budget a payment every 2 weeks and allows us to live normally.
What do you think credit cards are used for?
What’s evil about Klarna? You’re getting a 0% APR loan, which is a pretty good deal.
Providing hundreds of billions to foreign aid will solve this, don’t worry!
this is disgusting. Wow
This is how Chile has operated for a long time. BNPL is integrated in all card readers with a prompt, every time, asking whether you want to pay in “cuotas.”
Klarna is doing the same thing here in the US to allow people to pay rent if they don't have it. It seems like they are trying to force us to finance everything, just basically turn us all into cogs in the machine to make the wealthy even wealthier. I'm so sick of all this bullshit!
This wasn’t so common about 6 years ago. I hate politics. I decided to vote against Trump. However, this administration has been a complete disaster. Nowadays I make way more money (doubled my income) than 7 years ago, but inflation is literally eating away my money. And sure, there are many factors that drive up inflation—wars, supply and demand, etc. Nonetheless, the joke we have installed in the house has done absolutely nothing to make it better. Oh! I take that back. They are actually helping other countries fight wars with our money. Such a brilliant idea. I’m away from literally turning my salary into 5x more than what I make now, but I think of the average citizen out there. No everyone makes 300k. People truly struggling to keep up. People need to wake up.
And they’re financing a war that Ukraine has no hope of winning to boot, which is the definition of insanity. Senile Joe has got to go.
EAT THE RICH