Previous Story
Why You Should Pay For Items In Full Rather Than Making Monthly Payments
These days, more and more people are attempting to become financially literate in order to attain economic stability and retire well. Although there are many financial questions that people want answered, one of the most common is “Should I Pay For My Items In Full Or Make Monthly Payments?” The answer is that you should pay for the items in full. Here are four reasons why:
You Can Use Your Item Immediately
One of the many downfalls of making monthly payments is that you often don’t get to have your product until you’ve paid in full. An example of this would be stores that offer layaway options for clothes in which the customer makes several small payments until the full price of the garment is paid. Only when all payments are made does the customer receive the clothing item.
You Don’t Run The Risk Of Missed Payments
One of the challenges that results from making monthly payments is that you run the risk of missing one or some of them. This could happen as a result of several things, such as an unexpected medical bill that requires you to pay an exorbitant amount of money, thereby depriving you of the funds you’d usually have for your monthly bills. In the event that you miss several of your monthly payments on an item, several negative things can happen, including a lowered credit score that compromises your ability to buy a car or house. Oftentimes, this type of poor financial habit can lead to other lackluster purchasing decisions that further impair your credit and even cause you to start “drowning in debt.” Luckily, there are a plethora of debt consolidation companies (such as D. Thode & Associates, a company that specializes in debt consolidation in Kelowna) that can help you consolidate your debt so that further financial turmoil does not ensue.
Your Product Will Not Be Repossessed
When you make monthly payments on an item rather than paying in full, you run the risk of having the item repossessed. A very common example of this is missed payments on cars. After a certain number of missed payments, the dealer is typically authorized to come reclaim the vehicle. This type of event can be very inconveniencing and saddening, so preclude it from happening by opting to pay in full for your items.
You’ll Probably Get A Cheaper Rate
As many financial experts know, paying in full often results in you having to pay a substantively lower rate than making monthly payments. Retailers and other business owners delight in people who pay for items in full because they know their money is guaranteed, which is why many offer lower rates as a “reward” for giving them a “lump sum” rather than a fraction of the item’s total cost.
If you’re serious about getting in the best financial shape possible, you should know that paying for items in full instead of making monthly payments is important. By getting in the habit of buying things flat out rather than getting on a monthly payment plan, you can get and remain on the path to financial prosperity.
