The illusion of being able to afford more.

Interest free buy now, pay later options have started appearing on a variety of big online retailers.

One of the most common is Klarna which allows shoppers to pay in either 30 days’ time, with their bank or credit card, or to pay for their shopping in three equal payments, the first taken immediately and the next two 30 and 60 days later.

With 8.6 million Klarna customers in the UK, buy now, pay later is one of the fastest growing methods of payment. When using Klarna, the consumer pays no interest and the retailer foots the bill. They also pay Klarna up to 5% of each sale plus a fee.

It sounds simple enough – but Moneydashboard called it ‘the illusion of being able to afford more’. Are people being tempted into buying more things than they can actually afford?

Is Klarna Safe?

It depends what you mean by safe. Is it a legit company? Yes. Is it safe for your wallet? hm, not so much.

When you’re shopping with a buy now, pay later company, chances are, you’re not worried about how you’re going to pay the full amount for something. At least not yet. That’s why you decided to use Klarna in the first place. But buying now and paying later for things is just delaying the inevitable which is having to worry about where that money is going to come from later.

We want to know about your experiences of buy now pay later, we have put together a questionnaire for our Members & visitors, we want to know what your thoughts are on buy now pay later. Click Through to answer our questions.