This might actually be a good way to teach kids about credit and interest. Let them borrow a small amount at a high interest rate and walk them through paying it off.
It's one thing to tell them about financial responsibility. But watching a bad choice drain their piggy bank is the sort of trauma that leaves a scar.
Credit seems like a tax on the poor.
I looked into using this type of service to pay for a modest purchase. A luxury of sorts. Something I had the cash for, but felt weird about paying all $600 or so for. I thought, maybe an interest free loan would be cool?
So i start to pay for the thing with klarna or whatever. And I see it's only a six week loan. Wait, my credit card is a free six week loan (give or take). Wtf. I'd have to pay the thing off faster than just using a credit card.
I talked myself out of buying whatever it was.
$8 for a McFlurry sounds absurd
Micro-financing is a concept that should be violently uninvented.
Payments Processing is its own niche highly lucrative industry. And options to convince people to finance every fucking thing are largely just rent-seeking schemes intent on nickel-and-diming the transactions of the poorest people.
At least it should be paid off by now
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