Post #4094910
2026-07-25 10:45 UTC
Klarna loans are free if you pay them back on time, but if you miss a payment, you're hit with a huge penalty charge and sky-high interest (on top of the principle *and* the penalty). On a small purchase, penalties and interest can quickly add up to a triple-digit APR.
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Replies (1)
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@pluralistic@mamot.fr 2026-07-25 10:45
That's where Klarna makes its money: people who miss their burrito installment payments. However: if a Klarna borrower goes bankrupt before they've repaid the principle, Klarna *loses* money. A successful loan-book of unsecured burrito mortgages depends on the existence of many missed payments and few defaults. 6/