From the point of view of financial education, it is better to save to buy in cash. If you know that you will need to change your refrigerator a year from now, it is better to start collecting the money month by month to buy in cash, in order to obtain discounts and avoid indebtedness.

Buying on Credit isn't Always Bad for Your Pocket - See Tips

But there are some unforeseen purchases that are urgent in which case paying cash can be bad for your pocket. Between appealing for the overdraft or installment, it is better to be in installments when you need to buy now pay later iPhone. If your glasses break and you need another, will you be blind? For those urgent purchases, use common sense.

In addition, we will help you choose when to buy in cash, when to buy in installments and when never in installments:

When to buy in cash

The advantage of having money to buy in cash is that it increases your bargaining power and allows you to get a good discount, which will make the payment more advantageous.

If you arrive at a store wanting to buy a $300 microwave that can be paid in three installments of $100 and ask if there is a discount in cash and the answer is 10% (equivalent to a $40 discount, or $270 in cash), you will find that there is a high interest rate built into the product.

When is it worth buying in installments?

Let’s suppose that in the case of a cell phone purchase, you didn’t have money to pay in cash or money invested and had to enter the overdraft to pay on time. In this case, it would certainly be worth paying in installments with no credit check phones, as the interest on overdrafts is around 12% per month.