Serves me right for assuming Germans had a similarly judgemental attitude to people who have ruined their finances. Thanks for the correction.

Finns often have a very puritan attitude to debt (you should fear it like the devil), and in the common discussion it’s often attributed to the ethics of the Lutheran church. That’s at least partially the reason we still don’t have a real personal bankruptcy option. Somewhat surprising to me that a country that shares that value system could be that forgiving to people – I’m a bit envious even 😅

Around here Klarna and other similar companies have long been seen as exploiting the fact that debt is really difficult to get through proper sources, and there’s a matching draconian bunch of collections agencies to support that business model. We’ve mainly been trying to tackle this by regulating the process of giving out loans, instead of giving people the necessary way out and thus giving the corporations an incentive to self-regulate.

If bad credit is actually no longer possible to collect on, it ceases to be good business. Hats off to Germany for having a proper route out of predatory loans.

I’ll try to find some and link, but I’m not sure if there are good ones.

Edit: couldn’t find one with quick googling. Guess I’ll have to write one when I have time.

Klarna 'bout to find out their business model doesn’t work as well in the US compared to the Nordic countries and EU, as

1. People are already up to their neck in debt, putting Klarna to the back of the queue in case there’s a default
2. Personal bankruptcy is a thing

Especially the Northern Europe personal bankruptcy is really not a thing, fuck up your finances and you’re never going to see a penny you make (above what you strictly need to live) until everything has been paid back. Debt that is actively being collected also never expires.

There’s a good reason Klarna’s been able to thrive in this environment – getting debt from banks is quite difficult and you have added security from the draconian collections process.

In the US a company ignores credit scores at their own peril. The bankruptcy process is one of the few things that works better in the US than in e.g. my home country Finland.