Buy Now, But Are You Sure You Can Pay For It Later?

Founded in 2005 in Stockholm, Klarna is a Swedish bank that provides online financial services such as payments for online storefronts, direct payments and post-purchase payments. Or in simpler terminology – buy now, pay later. Just one of many companies designed to make shopping more accessible for millions of consumers around the globe. However, just like anything where the balance is essentially ‘borrowed’, comes the risk of the dreaded D-word. Debt. 

Of course, if you pay off your monthly instalments on time and in full there’s no catch. But what about those times when you’ve overspent, miscalculated your weekly Uber spending’s, had too many cosmopolitans the Friday night before, or simply don’t have enough money in the bank at the end of the month to pay off the remaining balance. What then? Well, not only does that automatically restrict your access to Klarnas payment options on any future purchases. You also run the risk of having your credit score negatively affected, subsequently impacting your ability to obtain credit in the future. That shirt sitting in the back of the wardrobe with the price tag still on doesn’t seem like a good idea now, does it? 

So in today’s world when the majority of the population seems intent on getting into a serious relationship, is Klarna the modern-day shopping equivalent of this? Are some of us getting into things too soon, and ending up paying for it later? Have we all become so obsessed with labels – Boyfriend, New Collection, Single, Limited Edition – that we aren’t practically thinking about the long term effects they might have on our lives? 

If you aren’t able to pay off the boots you brought two months ago, it affects your credit score. And so if a similar situation occurs in a relationship, is our credit score like our confidence? When the relationship progresses and the other person naturally starts to want more commitment from you, and you find yourself unable to give them what they need… well what then? You not only risk isolating the person you’re with but also potentially jeopardising your confidence and ability in any other future relationships.  

However, in order to build a good credit rating and actually become experienced in navigating a successful relationship requires investment. And just like with any investment comes the risk of either long term growth or failure. The risk of a piece of clothing being faulty, or being a piece you will treasure forever. So in order to reap the rewards in both relationships and retail, requires risk and investment. And after all, life’s is too short not to treat yourself. 

So maybe instead of taking that full three-piece Hugo Boss suit, you just take the jacket on this occasion. And the person you’ve been dating the last few months, maybe just wait a few more dates before making things official. Chances are neither of the two are going anywhere. Just make sure to take one step, and purchase, at a time.

Contributor: Jordan Wake