What can you do if you don't have enough money to buy a computer, phone or other gadget? You can wait and save the required amount. Or you can buy it now, by choosing an instalment plan or taking a gadget loan. In this case, you do not have to wait, and you can get what you want right away, and pay for it later. Although these financial services solve the same problem, they work in different ways. Let's see how they differ from each other and what is more profitable to use today.
How instalment works?
An instalment plan is the ability to pay for a product or service in small instalments. When buying in instalments, the consumer pays the cost of the goods without any additional markup for a predetermined time.
The main features of buying gadgets in instalments:
Use now and pay later
Buying phone in instalments, you immediately receive it at your disposal. At the same time, the payment for the purchase is stretched over time, so there is no need to immediately part with a large sum of money. This is a convenient way to save money.
Easy and fast
In addition, the buyer does not need collect documents and contact the bank. Today, in most large electronics stores, you can apply for it on the spot.
Loan works differently. If you don't have enough money to buy a gadget, you can send an application to an online lender, and they will give you the required amount at interest. After that, during the agreed period, you need to return not only the amount of the debt, but also the interest established by the agreement for using the loan.
Depending on the amount, you may have loan online or you can apply for a personal loan if the amount of the gadget is large. Features of using a gadget loan:
Use now and pay later
As in the case of instalment, a gadget loan allows you to defer payment for a purchase.
Bigger lending amount
On the Internet, you can easily and quickly take out a loan for both a small amount and a large one. Often, you don’t even need to collect any documents for this: a passport is enough. However, you will have to spend time choosing the right loan offer, receiving money and then paying for the goods in the store you need.
There are no restrictions on the choice of gadgets
Not every store offers an instalment plan. And even if there is such an option, it may apply to a limited range of products. Gadget loan allows you to buy whatever you want – you just take a loan online and buy goods where you want.
So, is a gadget loan more profitable?
Obviously, both options solve the same problem of lack of money. At the same time, each of these financial instruments has not only advantages, but also disadvantages.
When selling goods in instalments, stores often impose the purchase of related products and additional services. This can negate the main advantage of instalments: no overpayment.
When choosing between a gadget loan and an instalment plan, you need to compare the conditions for granting a deferred payment and calculate the overpayment in each specific case.
However, in general, the higher the price of the gadget is, the faster and easier is to get a gadget loan from an online lender. This way you will have more freedom and you will be able to choose the product at the most favorable price for you, without paying attention to the terms and conditions of the instalment plan.