Installments in the retail trade
Installments in the retail trade will be back in time in the coming pre-Christmas period. There is an increase in the number of mobile phone, consumer electronics or home appliances that can be expected to be paid in installments without any financing costs.
For example, a large electronics retailer advertises that all products from 300 usd upwards can be paid on request in 30 monthly installments. The regular selling price is simply divided by 30, giving the monthly rate. No one claims to charge a premium on the interest payment.
Installments for mobile phones
Installments for mobile phones are becoming more and more common. The devices are purchased independently of a mobile phone contract and garbage in up to 48 monthly installments. Again, many providers advertise that there are no interest rates for the convenient installment.
As in previous years, this Christmas shopping season also means that retailers have nothing to give away. At some point in the calculation, the financing costs are certainly included. However, they are not presented to the customer.
Nothing speaks against installment payments
Basically, nothing speaks against installment payments. They spare the budget and allow you to make purchases even when there is no money left. However, consumers should always figure out whether taking a loan is not the better option. Small loans under 3,000 usd are often given by many banks at very low interest rates, because they serve to attract new customers.
Who buys with cash in his pocket or on the account, can negotiate discounts with some bargaining skill. Zero-percent financing can serve as a good price argument. Regardless of whether it is financed through the dealer or a bank, the duration of the financing should always be commensurate with the period over which the purchase is likely to be used.
It makes little sense, for example, to stutter a notebook over 5 or 6 years, if at the latest after 3 years a new device is needed anyway.