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Thread: Instalment plans to get their gears

  1. #61

    Default Re: Instalment plans to get their gears

    Quote Originally Posted by ManWearPants View Post
    this is relative. If you are buying a big ticket item, it make sense to pay by installment so that you can re-invest the money to generate income. If you are looking at small value item, it is better to save on the interests to lower the cost of ownership. Again I say this is relative to different people. i have friends who buy car paying in one lump sum cos they can afford to. Imagine the amount of money they can save.

    In TS case, I am sure he is not taking up a loan to generate income with the remaining money. He is taking up a loan to pay for the purchase by installment. In other words, spending money that is not in his possession. This is a bad habit that should be avoided, else it is the beginning of the love and hate relationship you have with the bank. The bank will send you love letters to entice you to BBB. Then when you default on your payment, they will send you hate letters to PPP.

    If one thinks he can be so discipline and sound in managing money, then wouldn't going to the loan sharks be even better? They offer higher credit limit, lower interest rates, allows you to pay in cash and they come to collect money from you. why need to use credit card for interest free payment? One need to know the modus operandi of credit cards is no different from loan sharks.

    Anyway, TS enjoy your lens.
    frankly speaking, its not that i dun have the cash for lump sum payment.

    diff ppl diff mode of payment. diff thinking

  2. #62

    Default Re: Instalment plans to get their gears

    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

  3. #63

    Default Re: Instalment plans to get their gears

    Quote Originally Posted by ManWearPants View Post
    this is relative. If you are buying a big ticket item, it make sense to pay by installment so that you can re-invest the money to generate income. If you are looking at small value item, it is better to save on the interests to lower the cost of ownership. Again I say this is relative to different people. i have friends who buy car paying in one lump sum cos they can afford to. Imagine the amount of money they can save.

    In TS case, I am sure he is not taking up a loan to generate income with the remaining money. He is taking up a loan to pay for the purchase by installment. In other words, spending money that is not in his possession. This is a bad habit that should be avoided, else it is the beginning of the love and hate relationship you have with the bank. The bank will send you love letters to entice you to BBB. Then when you default on your payment, they will send you hate letters to PPP.

    If one thinks he can be so discipline and sound in managing money, then wouldn't going to the loan sharks be even better? They offer higher credit limit, lower interest rates, allows you to pay in cash and they come to collect money from you. why need to use credit card for interest free payment? One need to know the modus operandi of credit cards is no different from loan sharks.


    Anyway, TS enjoy your lens.
    i dont see the need to promote illegal money lending here. going off tangent.

    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.
    pedantic.

  4. #64
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    Default Re: Instalment plans to get their gears

    read my comments with a pinch of salt. [edit] Anyway the TS has already decided. Let it be.
    Last edited by ManWearPants; 20th April 2010 at 04:18 PM.

  5. #65
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    Default Re: Instalment plans to get their gears

    Quote Originally Posted by ManWearPants View Post
    read my comments with a pinch of salt. Anyone the TS has already decided. Let it be.
    Good advise and you don't need to apologise for it. I have 3 sons all in their thirties and I have to remind them all the time to spend only on what they need, unless they can 'really' afford it. CC has been the downfall of many young men, and in this world of ours, we can't be sure what's going to happen next. So like you said, save for the rainy days.
    Home is where the heart is.

  6. #66

    Default Re: Instalment plans to get their gears

    diff ppl diff ideas.

    if u think u r able to sustain it, then y not...

    buy within your means.........................................

  7. #67
    Deregistered shaoken's Avatar
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    Default Re: Instalment plans to get their gears

    Courts does allow installment plans. Maybe you can check it out with them??

  8. #68

    Default Re: Instalment plans to get their gears

    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?

  9. #69

    Default Re: Instalment plans to get their gears

    Quote Originally Posted by dong2che View Post
    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?
    yeah great! i am done with it and through.

    its a perk for us. i am already done with it. thanks for all your post.

    good or bad.. whatever.

  10. #70
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    Default Re: Instalment plans to get their gears

    Quote Originally Posted by dong2che View Post
    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?
    I am not trying to be big brother or whatever to you. Just trying to express my views. Anyway, to each his own. Do whatever you deem fit.

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