Buy Now Pay Later on a phone

Creditor Guide: Klarna

Klarna is one of the largest Buy Now Pay Later (BNPL) providers in the United Kingdom. Offering users a way to spread the cost of their shopping payments interest free, Buy Now Pay Later has risen in popularity in recent years especially as the cost of living continues to put strain on household finances. 

However, the rising use of Klarna for purchases ranging from groceries to clothing has led to more people being in debt to Klarna.

Klarna Debt

BNPL providers like Klarna typically do not charge interest, leading users to feel this is lower risk lending. However, as we have previously written about, BNPL is certainly not risk free. Klarna, as with other Buy Now Pay Later schemes, can lead to users spending beyond their means, leading to missed payments and creating a cycle of over-indebtedness. As of March 2023, Klarna also began charging late payment fees for missed payments increasing the amount users will have to pay if they fall behind with payments.

In fact, 15.90% of people who sought out debt advice from us in the last three months listed BNPL as a type of debt, showing the prominence of Klarna in the UK financial landscape.

The Importance of Priority Bills

While keeping on top of any debt payment, including Klarna, should always be of great importance, keeping on top of your priority bills should take precedence. These are classed as things that could make you homeless and take away services you need to live comfortably. 

These include: 

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TV licence 

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HP/Secured Loans 

Klarna Debt Help

If you are in debt to Klarna or have fallen behind with Klarna repayments, the first thing you should do is contact them directly. Klarna can provide a variety of options to help you pay back what you owe, including payment holidays or deferrals. It is important to do this as soon as possible as late or missed payments will be reported to credit reference agencies and therefore may affect your credit file. 

Klarna Debt Collection

If you owe Klarna money and payment is not registered by the last reminder due date, your debt may be transferred to a debt collection agency. If this happens, it may result in you facing extra charges on your bill. You may also be required to settle the debt with the debt collection agency rather than Klarna.

Help With Klarna Debt

If you are already in debt with Klarna, we can help. We offer free, confidential, no-obligation debt advice any time, day, or night via our online debt advice tool. Or if you would prefer to speak with one of our expert debt advisors, you can call us on 01925 599400 or email