Instead of waiting for the day when they can buy what they want with money and saving, many people prefer shopping in installments. So, is this really a sensible choice?
It is necessary not to make a definite sentence such as “It is right/wrong to shop in installments”. Because your installment interest rates, the country you live in inflation rate factors should also be taken into account. For this reason, installment shopping can be logical or unreasonable depending on the situation.
While there was a promissory note culture in the past, nowadays credit cards and your online shopping With the entry into our lives, the installment option has become more used. Despite this, consumers still do not have enough information about which payment type is advantageous or not. So let’s get you a better idea about it:
If the conditions are as follows, it will not make much sense to shop in installments.
Installments seem like a practical thing at first. Opportunities are also getting easier day by day. But behind the installments interest rates there is. When you make a calculation like this, you see that you are actually making others rich with your own impatience.
Let’s say you came across a campaign in the store you went to and saw a device for 600 TL. Moreover, there is the possibility of installments, they can be divided up to 24 months. First payment in 3 months. When you decide to buy this, you see that the price starts to increase. Once, due to an installment sale, a interest added: Let’s say 93.60 TL. Since you want to delay the first payment, another difference is added: Let this be 9.60 TL.
Let’s come to monthly payments: 29.30 TLx24 months. This means that the annual interest they demand from you is 14.82%. When we collect them all, we understand that the price of the device is 703.19 TL, not 600 TL. 100-odd TL when you shop in installments more money you pay. So installment is an expensive thing.
If there is an installment option for the cash price, this will be a very logical choice.
However, due to the economic crisis in Turkey, this option is almost no longer offered. Inflation rate It makes sense in Turkey to shop in installments, as the price of the product you buy now will be doubled in 24 months. However, you should pay attention to the ratio of the principal + interest sum to inflation.
It also has a psychological dimension.
When you shop in advance, you make a purchase with your existing earnings, but when you shop in installments in the future too Assuming you have a budget. So you actually take a risk. Moreover, if you do not make your payments on time, you may be subject to various fees and interest depending on the type of plan you use.
Also for making small payments more products You become wanting to buy and you find yourself paying debts that cannot be overcome. Companies want you to buy more stuff and go into debt to do it. While you want to buy a product worth 600 TL, you will unnecessarily buy a 600 TL product that you do not need because you are tempted by the installment option.
Almost half of consumers are known to delay payments.
One of the most important reasons for this is that it is difficult to track the due date. In other words, since the installments cause difficulties in the mental sense, Price of delay You can also pay.
Millions of families in the country live with excessive installment debt and from the installment trap they can never escape. It is very comfortable to live by spending the money you hope to earn in the future, but it can cost you dearly.
Sources: 1, 2