Unable to pay Klarna debt in Northern Ireland – what are my options?

Klarna is a buy now pay later scheme which allows you to spread the cost of a purchase by paying for it over a series of monthly instalments. Klarna is interest-free in many cases and can be set up very quickly when making a purchase online or in-store. While Klarna can be a useful way to finance a costly purchase, what happens if you are unable to keep up with the required monthly repayments?

If you have missed a payment to Klarna, you need to take action to stop the situation escalating out of control. Klarna do enlist the help of debt collectors to recover money owed by customers who refuse to pay what they owe. This is an extremely serious step and can have a huge impact on your credit rating and your ability to obtain lending in the future.

If you miss a payment to Klarna, you still have time to sort the problem before debt collectors are called. How your missed payment is dealt with by Klarna will depend on which agreement you signed up to – the two most popular ones are ‘pay in 3’ and ‘pay in 30 days’.

If you miss your payment on the scheduled day, another attempt will be made to collect the money you owe. If this also fails, the outstanding balance will be added to your next scheduled repayment date.

You may also receive a reminder letter requesting that you bring your account up to date by paying the money you owe. If you fail to do this, your debt will be sent to debt collectors who will continue to chase you for the outstanding debt amount. At this point, you owe the debt to the debt collection company and not Klarna.

It is often the case that Klarna is just one of a number of debts an individual has. These other debts may include credit cards, loans, or overdrafts.

If you are struggling with Klarna debt – or any other borrowing you cannot repay – you may need to consider entering into a formal debt solution in order to deal with them adequately.

This could involve an Individual Voluntary Arrangement (IVA) or a Debt Management Plan (DMP) which allow you to repay your debts in a more affordable way through a series of agreed monthly repayments. All your debts – including those owed to Klarna – can be included in this type of arrangement.

The experts at Northern Ireland Debt Solutions can provide the help and advice you need when considering your options when it comes to problem debt. From our office in Belfast, our team of debt help experts can help you understand the solutions available which could set you on the path to financial freedom.

Speak to a member of our team today and take the first step.