Klarna Debt Collection - Should you Pay?

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Are you struggling to manage a Klarna debt collection? You are not alone. Every month, over 170,000 people visit our website looking for guidance on debt matters.

In this straightforward guide, we’ll explain:

What happens if you don’t pay Klarna on time
Steps to handle Klarna debt collectors
How your debt might end up with a debt collection agency
Ways you might be able to reduce some Klarna debt
How to prevent future Klarna debt collections

In 2022, arrears on household bills increased by 68% from £1,739 to £2,920¹. So, it’s quite common to feel worried about debt.

Some of us have even been there. With our experience, we’ll help you address your concerns about Klarna debt collection.

What Happens When You Don’t Pay

When you don’t pay Klarna for things you bought using their Pay Later options, things can get out of hand.

If you miss scheduled payments on a regular basis get ready for a debt collector to call on you. That’s if Klarna couldn’t get hold of you!

First, you can’t use any Klarna services anymore.

Next, a debt collection agency tries to recover the amount you owe. But if you used Klarna Financing and missed a payment, a credit reference agency gets told of the problem.

It could harm your credit history and ability to borrow more money! In short, it could ruin your credit history.

Debt Solutions Comparison

Dealing with debt and missed payments can be quite concerning, especially when debt collectors keep chasing you.

Don’t worry, there are different debt solutions available that can help you. These are:

Debt Solution	Description	Formality	Debt Type	Debt Range	Legally Binding	Impact on Credit Score	Asset Risk	Monthly Payment	Duration	Creditor Agreement Required
Debt Management Plan (DMP)	Agreement to pay back non-priority debts in one monthly payment.	Informal	Non-priority debts	Any amount	No	Yes	No	Varies	Varies (until debt is paid)	No (but creditors must be informed)
Individual Voluntary Arrangement (IVA)	Agreement to pay back all or part of your debts over a set period.	Formal	All or part of debts	Usually over £10,000	Yes	Yes	Possible	Fixed	Fixed period, usually 5-6 years	Yes (75% by debt value must agree)
Debt Relief Order (DRO)	Freezes debt for a year and be potentially written off.	Formal	Non-priority debts	<£20,000 debt	Yes	Yes	No	None during freeze	12 months	No (court approval needed)
Bankruptcy	Legal status for those who cannot repay debts, potentially writes off debts.	Formal	Unmanageable debts	Any amount, typically high debt	Yes	Yes	High	None during bankruptcy	Usually 12 months, then discharge	No (court process)
Consolidation Loan	Taking out a new loan to pay off all existing debts.	–	Multiple debts	Based on loan amount	Varies	Yes	Depends on loan type	Fixed	Depends on loan terms	No
Payment Holiday	Temporary relief or reduced payments offered by creditors.	–	short-term financial difficulties	Any	No	Yes	Low	Reduced or paused payments	Break of up to 6 or 12 months, depending on circumstances, payment history, and creditor’s policy.	No
Informal Negotiation	Direct negotiation with creditors for reduced payments or extended terms.	–	All debts	Any	No	Possible	No	Negotiable	Until agreement terms are met	No
Statutory Debt Repayment Plan (SDRP)	Plan to repay debts over a reasonable time, with protections from creditor action.	Formal	All debts	Varies	Yes	Yes	No	Fixed	Varies, based on ability to pay	Yes
Equity Release	Homeowners release equity from their home to pay off debts.	–	Debts of homeowners, typically older individuals aged 55+	Varies and depends on property value	Yes	Yes	Asset (home) is used as collateral	Varies	8-10 weeks timeframe from application to fund disbursement. Lifetime; repaid on house sale/death.	No

Why Your Debt Goes to an Agency

When you don’t pay Klarna by the last reminder they send out, the outstanding goes for debt collection.

You’re sent plenty of payment reminders and it’s best to respond. Ignoring them does not make the debt go away.

You have several options when a debt collector gets in touch with you. You could:

· Pay the amount you owe to Klarna

· Settle the amount with the debt collection agency

My advice is to be transparent with the debt collector. Tell them if you are struggling with money.

Explain your situation without being too over-the-top.

You may find a debt collector is more sympathetic to your situation when you are honest with them. They may even give you a little more time to pay!

How a debt solution could help

Some debt solutions can:

Stop nasty calls from creditors
Freeze interest and charges
Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:

Situation

Monthly income	£2,504
Monthly expenses	£2,345
Total debt	£32,049

Monthly debt repayments

Before	£587
After	£158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get started

How to Avoid It

To avoid a Klarna debt collection keep up with your repayments.

If you’re struggling for money, contact Klarna support before the payment is due. Work with them to find a way to pay off what’s owed.

Stay in contact with Klarna until you pay what you owe them.

I recommend calling the Klarna debt collection contact number. Before things get too out of control. It’s the best way of staying on top of things when you owe Klarna money.

» TAKE ACTION NOW: Fill out the short debt form

How to Deal With Them

If you’ve missed a Klarna payment and not been in touch for some time, a debt collector may contact you.

You should be aware of your rights and what the debt collector can do. Never ignore a debt collector when they try to contact you. It could lead to more hassle and trouble!

I always recommend that you cooperate with the debt collector.

First make sure the debt is yours though! Then you can discuss things in the hope of reaching a payment plan. One that you can afford.

Remember, a debt collector doesn’t have any legal powers! They cannot force their way into your home. Neither can they put any pressure on you to pay any more than you can afford!

You may have already paid off the debt and the information hasn’t reached the debt collection agency. But if the debt is yours and it’s legitimate, there’s no way you can get out of paying what you owe!

Remember, a debt collector can chase you for the money you owe for 6 years! The debt will go away if a creditor, in this instance Klarna, did not contact you about the money owed over the six years.

But this may hardly be the case in this instance.

If you can’t pay what you owe to Klarna, I recommend contacting an independent debt charity for advice. StepChange can provide support and debt advice free of charge.

You Can Snooze a Payment

You can hit the ‘snooze’ button on a Klarna payment but only before the due date. It will give you an extra 10 days to find the funds to pay what you owe.

Note – you can only ‘snooze’ each order once on a Pay Later plan. You can’t snooze the Klarna Financing payment option!

Also you can’t pay using a prepaid card – Klarna only accepts major debit and credit cards. Moreover, you can’t cancel a payment during the payment process!

Thousands have already tackled their debt

Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.

I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.

Get started

Reviews shown are for The Debt Advice Service.

Request Extra Time to Settle It

If after you hit the ‘snooze’ button you need more time, contact Klarna as soon as possible.

Their support team may be able to help and offer more time to pay – not guaranteed! But it’s always worthwhile.

Can’t Pay Due to Financial Hardship – Contact Support

If you’re struggling for cash, contact Klarna. They could set up a management repayment schedule for you. One that you can afford to pay!

Klarna Contact Details

Website:	https://www.klarna.com/uk/
Phone number:	0203 005 0833 (Local rate)
	0808 189 3333 (Freephone)
	0203 005 0834 (COVID 19 related)
Operating hours:	Mon to Sat 9 am – 6 pm Closed on public holidays.