Why else do you think it's called a "CREDIT card"? It's a legitimate way of extending credit to you based on whatever matrices the banks employ to decide on your financial standing.
Sure, you may have that $2,000 that you can afford to pay off but you decide to use the CC instead. Does this mean you are spending money that you currently don't posses? Of course it does. Why? Because after the purchase, you have the item in your hand and you continue to have your $2,000 in your account, a $2,000 that, if not for the CC, you would no longer have in order to buy the item. Makes sense?
The decision whether to immediately pay the $2,000 back to the bank does not change this fact because the choice whether to do so is up to you and isn't a confirmed fact until you so choose to decide.
There's no hard and fast rule to using your CC. It's your choice. But responsible and sensible use would be to minimise any interest charges to the purchases you have made.
1. Full payment within the allowed time is the safest
2. 0% instalment plan is the next but within the inherent risk of missing a payment and getting charged interest
3. Minimal partial payments are not recommended but there could be times when you're financially tight. Making a bigger 1st payment is recommended to minimise the interest charged
4. If you are charging something to your CC and can't make a payment plan similar to the above 3 patterns, then you shouldn't be buying that item to begin with.
This is called responsible use of your CC. Just because you haven't been bitten by your CC doesn't mean you shouldn't practice good habits in using it.
Hahaha, now this thread becomes a Kopitiam thread
the issue here is on interest free installment plans.
a lens in hand is worth two in the bush or shop whatever you call it. if you know you are going to be employed for the next 12 months on contract, it doesnt hurt to take an interest free installment plan that divides a 2400 lens into 200 per month. whilst i personally dont have the practice of doing that, i dont see any harm in it.
you get the lens 1 year earlier, the use of it, the pictures taken, versus saving 200 per month and buying it a year later, which probably suggests one doesnt really need it at all.
why not apply your same lump sum payment idea to buying a car for example, after all interest rates are bad now, its not zero interest for such purchases, why not save up for the next seven years, and then buy it at lump sump than pay via installment and get the use of the car right now?? can wait seven years later, after all your advice is, that spending money not in one's possession, is a bad habit.
read my comments with a pinch of salt.  Anyway the TS has already decided. Let it be.
Last edited by ManWearPants; 20th April 2010 at 04:18 PM.
Home is where the heart is.
diff ppl diff ideas.
if u think u r able to sustain it, then y not...
buy within your means.........................................
Courts does allow installment plans. Maybe you can check it out with them??
ManWearPants...dude, your posts in this thread are useless just like all the other big brother wannabes in here. Congrats.
To TS, I'd go with installment plans. If you're thinking hard about making an installment purchase, it probably means you're a responsible and disciplined enough person. Plus, interest-free installment plan is a perk for being a CC holder. Why not use it?