I can’t stop using Klarna to buy now and pay later – and I’m suffering the consequences

Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more SIGN UP I would like to be emailed about offers, events and updates from The Independent. open image in gallery Klarna has more than 85 million global users When I speak with Professor Alexandru Barbu, a lecturer at global business school INSEAD and an expert in household finance, he tells me that companies like Klarna previously didn’t report to credit scoring agencies – they’re starting to now voluntarily. “And without sufficient forecasting, they could find themselves compounding payments into future months in a way that could encourage a cycle of debt.” The challenge now will be to understand how these technologies will be used, and how some groups of people get exploited Professor Alexandru Barbu While these companies are transparent about your upcoming payments, and have well-designed apps to let you stay on top of approaching due dates, you can lose track if you’re paying off multiple purchases at once. “Small instalments building up on multiple purchases can quickly start to snowball.” A spokesperson for Klarna said: “Klarna offers interest-free, short-term credit with structured repayment plans, clear repayment dates and eligibility checks on every purchase. Unlike traditional credit cards, our products are designed to protect against overspending, with additional features like in-app budgeting tools, and the option to deactivate credit options directly through the app.” Professor Barbu thinks that BNPL services are a financial innovation that won’t be going anywhere.