‘Buy now, pay later’ schemes left me thousands of dollars in debt

She’s paying now.

Chantal Derrick, 26, is warning others about online platforms that allow you to “buy now” and “pay later,” claiming she ended up nearly $4,000 in debt from Klarna and VeryPay.

“When you’re young and careless with money, it’s so easy to get sucked down the rabbit hole,” the UK traffic management worker told SWNS.

“It feels like free money and makes it so much easier to buy something.”

These “buy now, pay later” (BPNL) models allow customers to purchase something instantly without paying the full price upfront, according to NerdWallet.

Buyers pay the rest of the bill in small installments over a period of time. For example, if you purchase an item for $300, you could pay $75 upfront and have three remaining payments of $75.

Klarna, which was founded in 2005 in Stockholm, Sweden, lets shoppers pay in four installments and promises “no interest.”

According to Bankrate, as of 2021, 60% of consumers have reported using a BNPL platform to make a purchase.

Although some use the service sensibly, it can be dangerous for those who love to buy things, or those like Derrick, who have a “bit of a shopping addiction.”

“One day you look at your account and realize you owe so much money,” she admitted.

“It can get really overwhelming — everyone wants to keep up with the trends.”

After reviewing her debt, Derrick paid it off and closed her BNPL accounts.

“The best thing I did was pay everything off and close everything down,” she said.

“Now if I want something I just buy it outright, and if I don’t have the funds to pay it twice over, I don’t buy it.”

She urges others to be careful when using the BNPL method.

“My advice to people thinking whether to use these services is absolutely don’t — stay away,” Derrick recommended.

When reached by SWNS, a spokesperson for Klarna said it’s simply an “interest free alternative to high-cost credit.”

“We check a customer’s ability to pay on each and every transaction and restrict the use of our services after missed payments to stop debt from accumulating,” the rep continued.

“These guardrails clearly work as our default rate is less than 1%, 30-40% lower than what you could see on a credit card.”

SWNS also reached out to VeryPay for comment.

Derrick isn’t the only 20something battling debt due to services like Klarna.

Last year, digital entrepreneur Armani Bryan told The Post that she fell into debt and has a dismal credit score due to BNPL.

“They are relying on customers to fall behind on payments,” Bryan said about payment-postponement apps. “That way, they’re able to collect late fees and report you to debt collectors.”