{"id":453033,"date":"2022-05-26T02:46:52","date_gmt":"2022-05-25T23:46:52","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/gen-z-tanks-credit-with-buy-now-pay-later-apps-like-klarna\/"},"modified":"2022-05-26T02:46:52","modified_gmt":"2022-05-25T23:46:52","slug":"gen-z-tanks-credit-with-buy-now-pay-later-apps-like-klarna","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/gen-z-tanks-credit-with-buy-now-pay-later-apps-like-klarna\/","title":{"rendered":"#Gen Z tanks credit with buy-now-pay-later apps like Klarna"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2553914b94a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2553914b94a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/gen-z-tanks-credit-with-buy-now-pay-later-apps-like-klarna\/#%E2%80%9CGen_Z_tanks_credit_with_buy-now-pay-later_apps_like_Klarna%E2%80%9D\" >&#8220;Gen Z tanks credit with buy-now-pay-later apps like Klarna&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CGen_Z_tanks_credit_with_buy-now-pay-later_apps_like_Klarna%E2%80%9D\"><\/span>&#8220;Gen Z tanks credit with buy-now-pay-later apps like Klarna&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Last July, Armani Bryan spotted a $2,000 blue Marine Serre dress on posh digital retailer Farfetch that she just had to have \u2014\u00a0but couldn\u2019t quite afford.<\/p>\n<p>And so, the 20-year-old Miami native used payment-postponement <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a> Klarna, figuring there\u2019d be no harm in purchasing the frock in four installments through Klarna\u2019s seductive \u201cPay in 4\u201d option.\u00a0<\/p>\n<p>But for Bryan, Klarna\u2019s updated, glossy take on layaway turned out to be too good to be true. Now saddled with debt and a dismal credit score, she joins the more than 717,000 millennials and Gen Zers commiserating on TikTok over their respective buy-now-pay-later, or BNPL, horror stories via the hashtag #KlarnaCredit.<\/p>\n<p>\u201cI thought paying for this dress in four [installments] would be easy for me, but it wasn\u2019t,\u201d Bryan told The Post.<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/image0-6.jpeg?w=460\" alt=\"Armani Bryan claims she's in debt, and has suffered a damaged credit report after overspending through buy-now-pay-later programs. \" class=\"wp-image-22378222\" width=\"614\" height=\"764\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/image0-6.jpeg?quality=75&amp;strip=all&amp;w=307 307w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/image0-6.jpeg?quality=75&amp;strip=all 460w\" sizes=\"auto, (max-width: 614px) 100vw, 614px\"\/><figcaption>Armani Bryan claims she\u2019s in debt, and has suffered a damaged credit report after overspending through buy-now-pay-later programs. <\/figcaption><figcaption><span class=\"credit\">Photo courtesy Armani Bryan.<\/span><\/figcaption><\/figure>\n<p>The financial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> company, founded in Stockholm, Sweden, in 2005, offers its reported 150 million users the option to evenly divide the total price of an item into four payments, and pay off the balance over a six-week period with \u201c<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.klarna.com\/us\/pay-in-4\/\">no interest or fees if you pay on time<\/a>,\u201d per its website.\u00a0<\/p>\n<p>Once a customer agrees to the terms, the system allows the patron to make an initial deposit at check-out, and then it automatically collects the three following payments via the person\u2019s on-file debit card every two weeks.\u00a0<\/p>\n<p>But the most enticing part of the deal is, unlike classic layaway programs, in which retailers retain possession of a commodity while the customer chips away at the cost over time, Klarna releases the product to its clients im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely after the initial payment is made \u2014 a perk that seems to beguile young consumers.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"723\" height=\"1024\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-2.jpg?w=723\" alt=\"Klarna's 'Pay in 4' offers users the opportunity to purchase items, and pay them off over time. \" class=\"wp-image-22410035\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-2.jpg?quality=75&amp;strip=all&amp;w=1446 1446w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-2.jpg?quality=75&amp;strip=all&amp;w=1084 1084w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-2.jpg?quality=75&amp;strip=all&amp;w=723 723w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-2.jpg?quality=75&amp;strip=all&amp;w=361 361w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-2.jpg?quality=75&amp;strip=all 1024w\" sizes=\"auto, (max-width: 723px) 100vw, 723px\"\/><figcaption>Klarna\u2019s \u201cPay in 4\u201d plan offers users the opportunity to purchase items, and pay them off over a strict six-week schedule. <\/figcaption><figcaption><span class=\"credit\">Gado via Getty Images<\/span><\/figcaption><\/figure>\n<p>A March 2021 study by financial analysis research firm the Ascent found that\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fool.com\/the-ascent\/research\/buy-now-pay-later-statistics\/\">nearly 56% of consumers made purchases<\/a> through BNPL giants like Klarna, Afterpay, Affirm, Sezzle and Zip \u2014 all of which have different late fee, interest and debt-collection policies \u2014 between 2020 and 2021. And research published in June by eMarketer revealed that millennials and zoomers, like Bryan, make up almost <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.emarketer.com\/content\/almost-75-of-bnpl-users-us-gen-z-millennials\">75% of payment-postponement service users<\/a>.\u00a0<\/p>\n<p>But after purchasing her high-ticketed frock through Klarna \u2014 which is backed by a slew of trendy tastemakers like rappers Snoop Dogg, a minority shareholder, and A$AP Rocky \u2014 she found herself suffocating in debt to the service that promises users \u201cfinancial breathing room.\u201d\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"821\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/marine-serre-moonfish-dress-klarna.jpg?w=1024\" alt=\"The dress purchase ended up causing Bryan to sink into debt, leaving her with a hefty Klarna balance.\" class=\"wp-image-22410034\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/marine-serre-moonfish-dress-klarna.jpg?quality=75&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/marine-serre-moonfish-dress-klarna.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/marine-serre-moonfish-dress-klarna.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The dress purchase caused Bryan to sink into debt, leaving her with a hefty Klarna balance.<\/figcaption><figcaption><span class=\"credit\">Courtesy Armani Bryan; Marine Serre<\/span><\/figcaption><\/figure>\n<p>\u201cThey are relying on customers to fall behind on payments,\u201d Bryan said. \u201cThat way, they\u2019re able to collect late fees and report you to debt collectors.\u201d<\/p>\n<p>In the summer of 2021, Bryan \u201cfell on hard [financial] times\u201d and was unable to cover the balance of her loan.\u00a0She still owes $1,034 for the dress, plus $93.38 in fees. She said she\u2019s also regularly hounded by collection agencies pressing her to pay up.<\/p>\n<p>She\u2019s not the only one with a Klarna-related crisis.<\/p>\n<p>For college student Amy Douglas, the BNPL app enabled her to impulse buy and created  a \u201cvicious cycle.\u201d \u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"828\" height=\"1024\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Klarna1.jpg?w=828\" alt=\"Douglas claims she narrowly escaped long-term BNPL debt after falling behind in Kalrna payments. \" class=\"wp-image-22378221\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Klarna1.jpg?quality=75&amp;strip=all&amp;w=828 828w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Klarna1.jpg?quality=75&amp;strip=all&amp;w=414 414w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Klarna1.jpg?quality=75&amp;strip=all 936w\" sizes=\"auto, (max-width: 828px) 100vw, 828px\"\/><figcaption>Douglas claims she narrowly escaped long-term BNPL debt after falling behind in Klarna payments. <\/figcaption><figcaption><span class=\"credit\">Amy Douglas<\/span><\/figcaption><\/figure>\n<p>In the summer of 2019, the 22-year-old part-time retail worker began treating herself to trendy duds at online shops like ASOS, and using Klarna to defer the payments.\u00a0Her splurges felt reasonable \u2014 a $112 dress here, and $150 coat there \u2014 but they added up. <\/p>\n<p>\u201c[Klarna] almost made it seem like I was getting these things for free,\u201d Douglas, who lives in Cumbria, UK, told The Post. <\/p>\n<p>But when bills began rolling in, demanding over 40% of her monthly $630 income, she was forced to beg loved ones for loans.\u00a0<\/p>\n<p>\u201cIt was so embarrassing that I got myself into such large amounts of debt just because I couldn\u2019t control what I was spending,\u201d said Douglas, who hit up her boyfriend and her dad before <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/amyijdouglas\/status\/1520363343369932802?s=21&amp;t=yC_-18TN5Q8drADQTR0ONQ\">paying off her full balance <\/a>this past April. \u201cI never missed a payment to Klarna, because I was terrified at the mere thought of a debt collector knocking at my door.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-1.jpg?w=1024\" alt=\"Klarna reps insist that the company doesn't benefit from users' debt. \" class=\"wp-image-22410036\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-1.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Klarna reps insist that the company doesn\u2019t benefit from users\u2019 debt. <\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>A spokesperson for Klarna told The Post that the company does not \u201cbenefit from people being in long-term debt.\u201d Instead, the rep claims that the company works to \u201censure we only lend to those who can afford to repay.\u201d  Per its site, Klarna turns a profit by charging a retailer\u2019s fee to its 400,000 merchant partners \u2014 like H&amp;M, Nike and Peloton \u2014 on each transaction. <\/p>\n<p>And, while the BNPL behemoth markets itself to customers as having \u201cno impact on your credit,\u201d its fine print does warn patrons that \u201cmissed payments and unpaid debts are<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.klarna.com\/us\/customer-service\/what-happens-if-i-cant-pay-on-time\/\"> sent to debt collection<\/a>.\u201d It also claims to extend support to users in financial straits. (Bryan alleges she reached out to the company regarding her financial woes, but received no assistance.)<\/p>\n<p>Bryan has also gotten herself into trouble with Affirm, another deferred-payment app that appeals to young customers. Last summer, she racked up purchases using their \u201cPay in 4\u201d option, which she claims then tanked her credit score after a few late payments. However, a rep for Affirm told The Post, \u201cThere is no credit reporting with our \u2018Pay in 4\u2019 option. We only report longer term monthly loans.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/GettyImages-1237562291.jpg?w=1024\" alt=\"Affirm does not charge late fees or hidden fees to customers who miss payments. Instead consumers can apply for a modification to their repayment schedule. \" class=\"wp-image-22389096\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/GettyImages-1237562291.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/GettyImages-1237562291.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/GettyImages-1237562291.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Affirm does not charge late fees or hidden fees to customers who miss payments. Instead, consumers can apply for a modification to their repayment schedule. <\/figcaption><figcaption><span class=\"credit\">SOPA Images\/LightRocket via Gett<\/span><\/figcaption><\/figure>\n<p>TikTok financial educator Ben Markley told The Post that young consumers should be wary of all BNPL apps.<\/p>\n<p>\u201cThey\u2019re enabling you to spend money that you don\u2019t have yet, which really just means you\u2019re tying up your future paychecks,\u201d said Markley of budgeting brand You Need a Budget. <\/p>\n<p>Instead, he said millennials and zoomers would be wise to use another time-honored tactic: Save up for big purchases. <\/p>\n<p>\u201cCreate a [biweekly] budget for yourself, and set aside what would be the same amount you\u2019d pay in a four-installment payment program,\u201d said Markley. \u201cAnd after two months, you\u2019d be able to purchase the item in full, without the stress of getting into debt.\u201d\n                        <\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/05\/25\/gen-z-tanks-credit-with-buy-now-pay-later-apps-like-klarna\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Gen Z tanks credit with buy-now-pay-later apps like Klarna&#8221; Last July, Armani Bryan spotted a $2,000 blue Marine Serre dress on posh digital retailer Farfetch that she just had to have \u2014\u00a0but couldn\u2019t quite afford. And so, the 20-year-old Miami native used payment-postponement app Klarna, figuring there\u2019d be no harm in purchasing the frock in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":453034,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/klarna-rip-off-fees.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[129614,129649,70870,55268,72588,72446],"class_list":["post-453033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-5-25-22","tag-credit-reporting-agencies","tag-gen-z","tag-millennials","tag-money","tag-online-shopping"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/453033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=453033"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/453033\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/453034"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=453033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=453033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=453033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}