- Category: Miscellaneous
- #601265Despite having money power to buy anything, we need to workout the cost effectiveness of immediate buying and instalment paying. To me, instant buying makes us free from worries, but EMI purchase causes monthly worries.
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- #601274I always prefer purchasing with immediate paying only. I never opt for EMI. EMi purchase will make us to pay more than the cost of the item. Installments means the interest for the money will be worked out and price will escalate to that effect. Hence when the resources are available, better go for pay and buy.
I use my credit card for fuel purchase and other purchases. I will pay the bill every month in full. There also I will not opt for installments.
My suggestion to all is, if you can make down payment go for it. You can bargain on price also if you are opting for pay and buy.
- #601324Earlier I was buying with ready cash only . Then I took loan bank one or two times for purchase of certain appliances. Later ob, I started using credit card. properly complying to the bill cycle. However on two online purchases I utilised the EMI facility offered by a bank for those online purchase. But I decided on the instalment payment after working the relative outgo and the notional interest loss.
After experiencing and calculating I have come to a conclusion that if you have the capacity to repay easily, and if the instalment buy interest rate is only slightly above the bank deposit rates, then paying by EMi is preferable . But if the amount is very low it is better to pay ready cash and forget.
- #601336I have seen people going for bank loans and personal loans even for small things when they easily afford with the cash balance available with them.
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Even this challenging situation would ease
- #601341Everybody has different techniques and strategy. Some people can afford to buy what they want by paying full amount in one go. On the contrary, few people can't afford it and opt for monthly installments.
For me, I will opt for installments without availing bank loans like personal loans or loans from lenders. Suppose, if I want to buy that ASSIC Bitcoin mining super computers and heavy duty CPU machines then I wouldn't be able to pay for that machine in one go since the machine is very expensive and way beyond my budget. But, I know that this will certainly return me a good profit and I would be able to recover the capital, interest and profit in short estimated time. I would go for that but if I feel like, it will surely gain nothing or will take time to repay the loans or interest then I wouldn't venture on that knowing that will put me in jeopardy of lose.
Proper research and estimation is the Key to focus before we take risk especially while opt for loans and installments.
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