Boohoo, Pretty Little Thing and Asos are just some of the fast-fashion brands leering in customers with the Klarna ‘Buy Now Pay Later’ scheme. If these brands were not encouraging fashion consumption enough, they are now advocating an even quicker way of owning the latest fashion trends. If you ‘Klarna’ your shopping cart, you can try before you buy and not even pay a penny until 14 or 30 days after shipping; this is dependent on the store your purchase is from. Then, you only pay for what you want and return the rest.

Sounds like a win! Who can resist an opportunity to try on all the clothes sitting in their wish list? Now you don’t even need to dream of having a fortune to bring the latest styles home! Klarna appears to be the fairy godmother of fashion. But just like how Cinderella had to leave the ball by midnight, Klarna’s magic also comes with a catch.

Hold onto your purse! If you find yourself unable to make a payment to Klarna after the 14 or 30 days, and do not pay off the outstanding balance after two months, you will find an 18.9% APR interest added onto your remaining payment. If the remaining payment proceeds to not be paid two months after the interest was added, Klarna begins debt collection. So, your credit score could be at risk if you do not shop responsibly. Klarna does not seem so magical now!

Even though Klarna eliminates the time taken for returns to be credited, which is ideal for fashion-hungry individuals that are short of money, it could easily make you spend more than within your means. However, the fact that seven million people use Klarna’s service in the United Kingdom illustrates that the scheme is ever growing (Kevin Peachey, 2020). But it is important to think before you buy. If you are only buying something with Klarna because you know you do not have the expense to buy it outright, you could find yourself in some serious anxiety-provoking debt.

Kevin Peachey, a personal finance reporter for BBC News, contended that ‘Buy Now Pay Later’ schemes are particularly appealing and popular amongst the younger generation. This, perhaps, is not surprising as I know, from being a student myself, that there is pressure and desire to keep up with the latest fashion crazes. Additionally, we all want to treat ourselves to a bit of retail therapy once we have submitted a 3,000-word assignment or taken an exam! We deserve it!

However, most students do not have bags of disposable income to meet the demands of fashion. Once the weekly shop is bought and a few gin and tonics have been consumed at the pub, the weekly budget may not be enough to get that sparkly dress from Asos. Therefore, it is understandable that younger individuals are drawn to Klarna so that they can access the trends even when they are strapped for cash.

If you are savvy with money, Klarna may be beneficial to your shopping habits. But remember Klarna wants to encourage spending, and so do the fast-fashion brands. So, try not to feel pressured into the trends even if you know you have the budget. Overspending will only cause more problems in the long term; you can resist that Asos dress! Remember to keep on top of your balance on Klarna if you choose to use it and make sure you return items you do not want to pay for in good time before the 14 or 30 day period.

‘Buy Now Pay Later’ schemes are not as glamorous as advertised yet, also not something to fear. If you shop responsibly, Klarna could become your best friend. But step out of line and it could be your enemy! Tread carefully with fashion.