You aim for that blouse in the window, but soon you see that it doesn’t fit in your pocket. That’s when you start doing some mental math to see if you can take that beauty home by using credit card installment purchases. Therein lies the danger. Credit card installment purchases is an important tool when purchasing durable goods whose value exceeds your income, such as a car and even a refrigerator. Otherwise, the best thing to do is pay in cash. This habit can easily snowball and lead to high bills if care is not taken.

Here are five reasons to avoid buying in installments.

1. Credit card Installment purchases bring built-in interest

Despite the advertisements saying there is no installment payment on the interest-free card. The truth is that there is no free lunch, so businesses add this fee to the purchase price. This means that the attitude you take to make a product or service fit in your pocket ends up making it more expensive – even more than it’s worth. Therefore, the best thing to do is to buy in cash.

Buying in cash allows you to negotiate a discount. So, in addition to saving, you’ll still take your items home for a lower price.

2. You can lose good discounts

As much as the advertisements claim that the installment payment is made without interest, there will always be a fee built into the item’s final value. With financial planning, you can plan to make large cash purchases. That way, you avoid getting into debt. Also, since you are paying in cash, you’ll be able to negotiate a more advantageous discount.

3. It’s an incentive to shop on impulse

Suppose the lack of money is a (very fair) reason for not taking that blouse home. So, many people resort to credit card installment purchases. Therefore one of the brakes that kept them from making an impulse purchase goes down the drain. When paying in cash, you’ll notice the real impact of that expense on your bank account, and you’ll think twice before opening your wallet.

4. You will have long-term debt on items you no longer use

Do you know that blouse from the beginning of the article? It may be in fashion today, but it will be tacky in six months. Have you thought about whether you are still paying your installments? The same goes for smartphones, which can break, become obsolete, or even be stolen while you still face it on the bill each month.

5. It’s very easy to lose track of spending.

If we only analyze the short-term impact, we may even have the false impression that it will be soft on our pocket. However, we forget that there are probably more credit card installments that need to be paid – and you may not have the money to pay for so many purchases, which makes you a strong candidate for losing control of spending and acquiring credit card debt.
In addition to making you lose the reins, accumulating credit card installments can make your month financially more difficult. That’s because, with the bill up there, you’ll already start the month loaded with bills, jeopardizing your entire budget. In addition, this attitude can have a snowball effect: with no money to cover the month’s expenses. You’ll pay them on your credit card – making the next month’s bill even heavier.

In conclusion

The use of credit card installment purchases must always be done consciously so that debts do not jeopardize budget control.