Many consumers nowadays make grateful use of the option that exists to be able to buy things on installment. This is of course very well anticipated by, for example, large department stores that offer this all. But despite the fact that it is all made so easy for you and that you are barely put in the way of making use of installments, it is important that you think seriously before you start. It may seem very useful and beneficial to meet that much too expensive television through the installment plan, but of course that’s actually not the case at all. The interest rate that you encounter in such a situation rises so high that in many cases it is not advisable at all to opt for an installment purchase. Also note that if you do choose to do so and if payment arrears arise, a listing will also be blacklisted.
Alternative to installment payments
It may be clear that buying on credit could be very expensive for you, but you may be interested in alternatives to buying on credit. In fact, it is fairly simple, because if you look at most loans, you will already see that the interest rates are lower than when you pay on installments, and that seems to be much more obvious that you ‘just’ take out a loan and then be able to pay for everything instead of focusing on buying on installment. In order to be able to make a really good comparison, you must, of course, first of all be aware of the interest rate that comes with buying on installment. Once you know this, it is much easier for you to determine which route you can take for a cheap loan. A loan will usually be the best option in relation to installment payments, because although saving money is not directly associated with borrowing money, it is clear that more money can be saved with a regular loan than when the choice is to buy on installment.
Borrowing money is cheaper
Of course, borrowing money is always something in which the lending party comes out as the best, because after all, it ultimately gets back the loan amount plus the interest on top of that. However, if you look purely at installments and you would opt for a loan instead, then you probably have a much better deal and your costs will ultimately be lower. Also sort out such things carefully before considering installment payments. A credit card could also be an option for you.