Loading

When is installment purchase the best option?

Here are ways to take advantage of installments for items of great purchase value.

Installments mean that you pay a small amount in small portions for a fixed period of time until you pay it off.

Many people adopt this solution because they can enjoy an item that is priced at a price for them - for example, being immediately owned (smartphones, tablets, laptops, televisions, linen cabinets, linen machines) ,... while paying small monthly payments using future earnings. But keep in mind that installments are still a form of debt and it can get you into trouble if you're not careful.

1. Make sure you have the money to return.

Installments are best for those with a steady income to make a purchase, but there are also those who do not have a stable job and expect a cash flow in the coming months. You can't buy something for money that you don't have, make sure you have the money available to return.

2. Take advantage of 0% installments.

Most stores offer flexible payment options and installments of up to 12 months depending on how much income you'll apply. Pay attention to the 0% interest rate so that you do not have to pay an additional amount (interest) on your purchase.

3. Your purchase time.

Buying an item at the right time in the pay cycle can give you more time to arrange money or make your finance more balanced.
For example, if your paycheck date falls on the 26th of the month, but when you make a winning purchase on the 27th instead of being able to give you an extra month to save the maximum when buying will be charged into the next billing cycle.
You can also choose buy now pay later programs where you start paying for your purchases in about three months from the date of purchase. In this way, you can keep your money a little longer.

4. Always pay in full and on time.

As said above, installments will become useless if you do not have money to pay back. So, when your monthly billing date arrives, make sure you always pay the full amount.
When you do not pay the originally agreed amount in full, you will have to pay a significant interest. Such cases are often considered bad debts.

5. Do not pay late installments.

If you can't pay on time, you'll have to pay a late payment fee plus an interest fee. It is better to monitor and proactively pay at least three business days before the due date. In this way, you can rest assured that all installment payment methods will be transferred on time without you having to worry about unexpected incidents.

6. Installments before purchasing additional items.

When you buy a TV and you are paying for it for 12 months, you may want to use another expensive device because you can also pay ins installments. All these purchases can add up, and if you don't plan or budget these, you're likely to be in debt.