When is it Better to Pay in Installment?

Even if you meticulously plan your budget, it’s often hard to keep up with daily expenses. There will always be unexpected circumstances that drain your cash pool. Say, for example, your smartphone got busted and you urgently need a new one for work. Is your wallet ready for a five-digit cash out?

Even if you can afford to buy it in full, paying in installment may be the smarter decision because you won’t have to touch your savings or emergency fund. You can pay in tranches over a period of time, usually in several months or years, until you can pay for the item in full. This way, you can buy an investment piece without blowing your budget in one pass.

Shop on Installment!

Need shopping tips? Here are some cases where paying in installment helps you purchase things you need at work or at home.

1. Acquiring a New Car

Whether it’s brand-new or second-hand, you don’t have to use up all your savings for that much-needed car. Paying for a car on an installment basis gives you the ease of not having to shell out a huge amount upfront. You’ll have enough time to save for monthly payments and you’ll also be able to allot the rest of your money for other important expenses like the education of your children or profitable investments.

Plus, you can choose between various auto loan deals and financing options with low monthly payment and interest rates. Do your research and talk to the right people who can help you finance a car without breaking the bank.

2. Getting a New Smartphone

 You can still own the latest smartphone with all the features you need even if you can’t buy it outright at full retail price. Enjoy ease of payment by breaking down the sum of your purchase into staggered payments. With Cashalo, you can also avail of gadget loans for your next smartphone. Cashalo’s Shop Now, Pay Later lets you apply for a gadget loan and pay later for that smartphone in as low as 0% installments.

3. Buying Home Furniture and Appliances

A tight budget is not an excuse for you to leave your home unfurnished. You can use Cashalo’s Shop Now, Pay Later to get an appliance loan and shop for that TV, air-conditioning unit, and other home appliances at as low as 0% interest. Look for the best deals possible from different Cashalo partner stores. Not only will you be able to get the high-quality units that you need, you’ll also get to save and manage your expenses better.

4. Emergency Purchase

Nothing like having that emergency fund to give you a sense of security especially during uncertain times. Ideally, you should have three to six months of living expenses ready in case of an emergency. Through deferred payment schemes, you can squeeze in unplanned but needed purchases into your budget despite a limited income. Your old refrigerator broke down and is beyond repair? Replace it immediately with a brand-new unit. With Cashalo, you can get affordable personal loans when you need it most.

5. Get First Dibs on Exciting Perks

With installment purchases, you’ll get more than just financial assistance. You’ll also enjoy awesome benefits that fit your lifestyle. Besides the zero percent interest and fast approval, installment options also offer exciting perks like free flights, shopping and restaurant gift certificates, cash rebates, and other promos.

 

Things to Consider Before Paying in Installment

• Interest rate and monthly payment

Costs of monthly payments and interest rates are usually fixed during the installment period. This way, you can plan out your cash flow and expenditures. The interest charges may vary depending on the length of term and can go from as low as 1% to 5%, depending on the provider.

There are also loan providers that offer as low as zero percent interest installment plan like Shop Now, Pay Later. This kind of loan is one of the best because it allows you to pay for your transaction in equal tranches without having to pay for additional interest fees.

• Penalties

Keep track of your payment schedule to avoid the risk of getting penalized for payables you have unintentionally overlooked. You’ll incur a penalty for not paying on or before the installment due date. Remember that these transactions do add up so it’s important to set your budget and pay on time.

• Loan duration

Terms and processes differ, so make sure to check all the conditions that have been set in your installment contract. Consider how long you can pay for it and how much you can shell out each month, so you can get the best deal you need.

• Repayment methods

Check out the different payment channels and options so you can conveniently repay your loan or debt. Always secure a receipt as proof of payment.

• Credible and legitimate lending companies

Double check if the lending company you want to deal with is credible and legitimate. Look for one that has a good verification process and offers installment plans with clear terms and conditions. The company must also have a fully functioning and secured website with a responsive customer service hotline.

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Installment payment schemes allow you to make smart and educated purchases so you can get the best value for your hard-earned money. With Cashalo, you can have access to Shop Now, Pay Later that offers fast and easy loans that you can use for your personal needs with the lowest interest rate. So, what are you waiting for? Download Cashalo now!

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