A personal payday loan is cheaper than buying on installment.
Many retailers offer the option to purchase white goods and multimedia equipment on installment. But for those who calculate the costs, it soon becomes clear that this is very expensive. You are better off taking out a personal payday loan or revolving credit.
Buying installment loan is expensive
There is nothing wrong with taking out financing for something that you would like to have. Nowadays, for example, many people purchase a flat-screen flat-screen TV because they cannot have the purchase price in cash.
But buying on installment is very expensive. To stay with the example of the flat screen, who sits down and calculates the costs, you soon come to the conclusion that by the time you finish paying off, you have paid the flat screen almost twice!
The financing companies that make it possible to purchase on installment have much higher interest rates than, for example, a bank that does with an ordinary personal payday loan.
Not only do they use higher interest rates, but they also use lower standards when granting financing. In other words, people who actually should not get a loan because they simply cannot afford it (because borrowing costs money), who still get the financing for that flat screen TV, with all the consequences that that entails.
But what if you have set your mind on buying a flat screen and don’t have the cash for it? It would be better for you to take out a personal payday loan or revolving credit. You also pay interest on this, but it is not as exorbitantly high as the interest that the financing companies charge for buying on installments.
With a simple calculation you can see what you have saved.
You ask the seller how high the repayments are from the financing that he offers you and how many repayments you must make and you compare the total with the price of the flat screen TV. You then do the same with the number of repayments that you should make to the bank when paying off a personal payday loan or revolving credit.
If you are not shocked by the large difference between the price of the flat screen TV and the final repayment to the financing company, then you are shocked by the large difference between the financing company and what you have lost at the bank. Borrowing with a personal payday loan or revolving credit is many times cheaper. You will either have finished paying off earlier or you will have more space to purchase something extra with your flatscreen TV, for example.