Which is Better: Paying in Installments or Saving First?

[Suba]

Sometimes in life, we often face a dilemma, especially when we need a large sum of money, such as buying a property, a car, or something else. But our financial situation doesn't allow us to buy it in full/cash. However, there are offers of installment payments, requiring only a down payment of around 25% of the purchase price. Another way to buy a dream item is to save up until we reach the price. Both systems have their advantages and disadvantages. One disadvantage of saving first is that the money is used for other purposes, while the disadvantage of buying on credit is that the price often doubles.

 

[Springtime]

I always prefer to pay in full instead of by instalment. But for buying big ticket items or an apartment, there is no choice, I have to pay by instalment or take out a loan.

 

[eLdavis]

I personally don't think one is better than the other though, it mainly depends on which you find most comfortable or your preference.

 

[aninditasen]

Sometimes in life, we often face a dilemma, especially when we need a large sum of money, such as buying a property, a car, or something else. But our financial situation doesn't allow us to buy it in full/cash. However, there are offers of installment payments, requiring only a down payment of around 25% of the purchase price. Another way to buy a dream item is to save up until we reach the price. Both systems have their advantages and disadvantages. One disadvantage of saving first is that the money is used for other purposes, while the disadvantage of buying on credit is that the price often doubles.

I go for both. For house renovation, I first save but now gold is very expensive in India so I am paying by installment to buy gold.

 

[Suba]

I go for both. For house renovation, I first save but now gold is very expensive in India so I am paying by installment to buy gold.

In my country, there are several safe and trusted gold savings platforms, some of which are government-owned, where we can open a gold savings account and start saving a minimum of 0.01 grams and we can deposit cash which is immediately converted into gold.

 

[aninditasen]

In my country, there are several safe and trusted gold savings platforms, some of which are government-owned, where we can open a gold savings account and start saving a minimum of 0.01 grams and we can deposit cash which is immediately converted into gold.

Here in my city, jewelry shop owners give this facility.

 

[Suba]

Here in my city, jewelry shop owners give this facility.

That's great, but unfortunately, jewelry shops aren't large businesses and are mostly privately owned, so there's a risk of going bankrupt and losing our gold.

 

[King Belieal]

I would prefer to buy and pay through installments. Trying to save? Something might just come up and you have no other option than to clear your savings to solve that.

 

[Nomad]

Paying in installments can be good but it also depends on what you are paying for. If it is luxury item it is not good

 

[freelancermaria]

Both options are okay. It depends on the person's capacity. If the person can pay the installments on time, there is no problem. Some people really have no other choice but to pay in installments.

 

[Starmix]

It depends on the financial capacity of the person; he may opt to buy through installment or cash. If the goods are not expensive, he can pay in cash but if it is not like an appliance, he can apply a monthly installment up to its full payment is made.

 

[aninditasen]

That's great, but unfortunately, jewelry shops aren't large businesses and are mostly privately owned, so there's a risk of going bankrupt and losing our gold.

They give us a receipt. Many people are doing that in my city.

 

[Stardom22]

For me l go for making savings first. That's because paying installments is pretty expensive for that matter.

 

[Suba]

They give us a receipt. Many people are doing that in my city.

Receipts can be used as proof of ownership, like shares, or as debt instruments, like bonds. However, if they are treated as ownership or equity participation, if the jewelry shop goes bankrupt, the equity participation will be difficult to recoup, unlike debt instruments.