Klarna, ClearPay & LayBuy

It may seem like a good idea to 'Buy now, pay later' via Klarna, Clearpay & Laybuy, however there are risks students should be taking into consideration;

  • Even though shoppers are breaking down the costs to more affordable instalments, reports show that ultimiately this is influencing shoppers to spend more money which could be accumulated into unmanageable debt in the long term.
  • Even though interest may not be applied, these transactions will appear in your credit reports which could impact your credit score in future.
  • Failure to meet these payments whether they're in 30 days or in 3 istalments could eventually become debt that is referred to a debt collection agency.

From our own assessments in our hardship fund applications we have found that students are having their finances and budget plan negatively impacted via the use of Klarna, Clearpay & Laybuy. Our advice is to approach these services in the same way as you would with credit cards. Students must be responsible in selecting their purchases and payment methods, ensuring they have a viable financial plan in place to meet their payment schedules - If it isn't viable then this could lead to facing financial difficulties.

More information on issues like this can be found on websites such as 'Save the Student'.