Purchasing Power: 7 Installment Payment Statistics You Probably Aren’t Aware Of
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Offering payment options or flexible payment plans is a win-win situation for both businesses and customers. Businesses can entice a larger target market while customers can purchase products in whichever form of payment plan and method they are comfortable with. These payment options refer to straight transactions or installment payments using debit or credit cards, PayPal, e-wallets, and more.
Installment payments appeal to consumers because it eliminates the need for consumers to pay for their purchases in one go, creating more wiggle room in their budget because they're not spending as much. Since they are splitting the total cost in portions over a specific number of monthly payments, consumers can buy items without putting a dent on their wallets.
If you're wondering how installment payment arrangements are changing the way people shop, this blog post will enlighten you. Below is a visual overview of how installment payment is redefining shopping around the world. By the end of this article, you wouldn't be too worried about buying items via installment plans anymore.
More Advantages of Installment Payments
- It allows you to spend wisely
If you have funds in your bank account and you're capable of paying your purchases in full, then good for you. However, if you don't want to use up your cash reserves completely, you can always choose to pay in installments. These days, it's always better to have enough cash for emergencies.
In the same vein, if you need to make a large purchase and don't have the means to pay in full but still have space in your monthly budget to do so, then you can check out the item and pay it later installments. In a sense, this gives you that purchasing power and allows you to spend and pay smart.
- You can make unexpected purchases without breaking the bank
Another advantage of installment terms is that it allows you to buy unplanned but necessary purchases. For instance, your MacBook suddenly died, and getting it repaired would cost the same as getting a refurbished MacBook. You can opt to purchase a refurbished one, which is good as new anyway, without taking out a considerable chunk from your account.
This is especially useful when you're on a tight budget and can't afford to pay things in one go. By opting for staggered payment arrangements, it gives you leeway to purchase whatever you need without setting you back hundreds or thousands of dollars.
- It lets you stretch your purchases over a period of time
Dividing your lump sum into staggered payments fixed monthly helps you stay on track of your finances. The monetary flexibility brought upon by installment plans makes sticking to your budget easier and more manageable.
Additionally, the monthly interest rates (if they don't offer 0% interest rate) are fixed for the entire period of your repayment so that you can plan out these costs and your cash flow correspondingly. This lets you take on a manageable amount of loan without issues.
- It makes you feel confident about spending
Because of the rising expenses and low-income rates, a lot of consumers feel squeezed. Even those who are relatively secure are careful about where their money should go. As a result, they prioritize buying the things they need and less likely to buy the things they want.
Although being financially responsible is commendable, you don't have to deprive yourself of getting rewarded for your hard work.
The fear you have from overspending and monthly repayment plans provides a built-in discipline that helps you control your finances, and eliminates the unduly delayed gratification from buying your "wants."
Shop Smarter and Manage Your Finances Better
Having the freedom and ability to extend your payments by spending the amount you can afford each month, depending on your payment term selection, can be a great way to get what you need without damaging your financial health. Thus, making it easier to monitor and manage your finances. Plus, you get to boost your credit reputation.
If you're thinking about purchasing a new MacBook for your work or learning, consider getting a refurbished MacBook. You can get your hands on one right now! Macs4U offers excellent financing options that fit your budget for refurbished MacBooks. Visit Macs4U today and score amazing deals!