Klarna Can’t Pay – What You Need To Do

Are you struggling to manage your Klarna debt and worried about what happens next? You’ve come to the right place. Every month, over 170,000 people visit our website for advice on debt problems. 

In this guide, you’ll learn about:

•  What Klarna is and how it works
•  The steps to take if you can’t pay your Klarna debt
•  The possible outcomes if you don’t pay Klarna, including late fees, credit score damage, and debt collection efforts
•  How to get in touch with Klarna and discuss your payment issues
•  The option of writing off some Klarna debt

In 2022, arrears on household bills increased by 68% from £1,739 to £2,920¹. So, it’s common to be concerned about debt and missed payments.

Don’t worry! We’re here to help you learn how to deal with your Klarna debt. Let’s get started.

What You Need to Do

It’s often too easy to overspend when using a buy now, pay later option.

It can be deceiving when you don’t have to fork out the money immediately to buy something. You could find yourself falling into a Klarna debt trap, albeit accidentally!

My advice? Try to keep control of your spending as much as you can.

Budget Advice

I’ve put together this table that provides 10 budgeting tips to help you manage your finances effectively and avoid missing payments.

Budgeting Advice	How You Can Lower Your Expenses
Arrange a Debt Repayment Plan	To negotiate, contact your creditors via phone, email, or letter to explain your financial situation, and offer to pay an amount you can afford.
Save on Utility Bills	Compare energy providers to find a cheaper deal. Use energy-efficient appliances. Reduce water usage with low-flow fixtures.
Save on Groceries	Shop with a list to avoid impulse buys. Buy store brands instead of name brands. Look for sales and use coupons.
Cut Back on Non-Essentials	This includes dining out, entertainment, subscriptions, and luxury items. Look for free or low-cost entertainment options and cook meals at home.
Transportation Costs	If possible, use public transportation, carpool, or consider biking to work. If you own a car, maintain it regularly to avoid costly repairs.
Negotiate Bills	Contact service providers (like phone, internet, and cable) to negotiate a lower rate or switch to a cheaper plan.
Consolidate Debts	If you have multiple debts, consider a debt consolidation loan or a balance transfer credit card (with caution) to lower interest rates.
Sell a Financed Car	When you sell a financed vehicle, the proceeds can be used to pay off the remaining loan balance.
Use Cash Instead of Credit	To avoid accumulating more debt, use cash or a debit card for your purchases.
Seek Professional Advice	If you’re struggling, consider contacting a debt advice service like StepChange or National Debtline. They offer free, confidential advice.

What happens if you don’t pay?

It is important to repay Klarna on time because failure to do so can result in late fees, interest charges, and negative impacts on your credit score.

Late payments can also result in your account being sent to collections, which can further damage your credit score and lead to legal action.

This includes:

Late fees and interest charges

One of the first consequences of not paying Klarna bills on time is late fees and interest charges.

When you don’t pay your bills by the due date, Klarna will start charging interest on your balance, and the longer you take to pay, the more interest you will accrue.

You may also incur late payment fees, which can add up quickly and increase the amount you owe.

Credit score damage

There is an impact of Klarna on your credit score.

Klarna reports payment information to credit agencies, and if you don’t pay your bills on time, this information will be reflected in your credit report.

A lower credit score can make it harder for you to get approved for credit in the future, and you may end up paying higher interest rates on loans and credit cards.

Your credit score is calculated based on a number of factors, including your payment history, the amount of debt you have, and the length of your credit history.

When you don’t pay your Klarna bills on time, it will be reported as a missed payment on your credit report. This can cause your credit score to drop significantly, and it may take six years to recover.

Debt collection efforts

If you don’t pay your Klarna bills, the company may also hire a debt collection agency to recover the debt as part of the Klarna collections process.

Debt collectors can be aggressive, and they may use tactics such as calling you repeatedly and threatening legal action.

It’s important to understand that debt collection agencies are governed by strict laws, and they are not allowed to harass or threaten you

Contact Them If You’re Struggling to Pay

It’s better to talk about things rather than ignore them, hoping they will all disappear.

There are options available if you are experiencing Klarna payment difficulties. This includes hitting the ‘snooze’ button option. It gives you an extra ten days to pay Klarna

Klarna will ‘snooze’ a due payment for ten days which doesn’t incur any extra charges! However, there is a ‘but’.

You can only snooze one order once.

If you need any longer than ten days, contact Klarna support as soon as possible and before the payment is due to talk about payment plans with Klarna.

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.

The Financial Hardship Option

The pandemic has made times hard for the last couple of years. Your circumstances may have changed. You may not be bringing in enough money to meet bills. It could mean you fall in the ‘financial hardship’ category.

You can contact Klarna support in several ways, as detailed below:

·         Use their Live chat in the app

·         Call the Klarna support team. They’re available from Monday to Saturday from 9 am to 6 pm

Klarna support may offer you a more manageable payment schedule. The key to having a successful outcome when you’re struggling for money is to stay in contact with Klarna.

Don’t ignore things because the problem could escalate faster than you think.

» TAKE ACTION NOW: Fill out the short debt form

I Have an Existing Payment Holiday. Can I Extend It?

Contact Klarna for “further support” if you need more time to pay.

You should do this before your ‘payment holiday’ runs out. They could offer other options, so you don’t miss a due payment.

It’s far better to discuss a Klarna can’t pay option than it is to ignore the problem.

What Happens When They Send Your Details to an Agency?

Debt collectors are persistent.

They don’t give up when they’re asked to collect money that’s owed. If you ignored Klarna’s last payment reminder, they instruct a debt collector to contact you. My advice? First, never ignore the last payment reminder Klarna sends you.

Next, never ignore a debt collector!

When a debt collection agency gets in touch, you should either:

· Pay what you owe to the debt collection agency once you establish the debt is yours!

· Settle the amount you owe with Klarna

Be transparent with the debt collection agency if you can’t pay what you owe immediately.

Explain how you’re struggling to pay bills. How you have encountered a Klarna can’t pay problem. The more honest you are about your situation, the better the outcome should be!

Dealing With Debt Collection

First, know your rights when Klarna sends your details for ‘debt collection’.

You should know what a debt collector can do and what they can’t do. Next, don’t ignore anything from a debt collector. As stated, debt collection agencies don’t give up when asked to get what’s owed.

They’re persistent because that’s how debt collection agencies earn their money!

My advice? Cooperate with the debt collection agency once you establish the debt is yours!

Propose a repayment plan but remember, debt collectors don’t have to agree to the plan. That’s up to Klarna.

A debt collection agency cannot insist you pay more than you can afford.

They don’t have legal powers, either! Furthermore, a debt collector can’t enter your home.

What If I Can’t Pay?

If you can’t pay a Klarna debt, don’t panic because you’re not alone! Many people have fallen into the buy now pay later debt trap.

There’s a lot of support and help out there, which includes:

·         Discussing the problem with Klarna’s trained team of advisers

·         Contacting Citizens Advice for Klarna debt advice.

·         Speaking to StepChange Debt Charity

·         Calling the National Debtline

·         Discussing the problem with Debt Advice Foundation

My advice for overcoming Klarna debt? Get in touch with Klarna debt collection on the dedicated contact number.

Don’t wait too long because things won’t go away when you have a Klarna can’t pay problem! Stay in contact to prevent a missed payment from affecting your credit history and score.

It could impact your ability to borrow further when you need it the most!

References

1. StepChange Personal Debt Statistics in Scotland 2022