Klarna pioneered buy-now, pay-later loans, which have been used by an estimated 17 million peopleYoung shoppers are increasingly borrowing money to repay their buy-now, pay-later loans, leaving many in a “spiral of debt”, Citizens Advice has warned. The charity found that, among all ages, about two in five people using a service such as Klarna borrowed money to meet their repayments. SponsoredUsing a credit card was the most popular type of borrowing. Some shoppers, Citizens Advice found, turned to expensive payday loans to cover their buy-now, pay-later debts. Of those aged between 18 and 34 who use buy-now, pay-later services, Citizens Advice found that 51 per cent borrowed money to make their repayments.

Source: The Times June 09, 2022 00:30 UTC