Instalment plans to get their gears

[sinned79]

actually there is a good way.

if u got the cash, dun pay cash. pay by credit card. then pay in full next day to the credit card hahah... can earn points!

i just bought 35mm yesterday and pay in full using my premier miles card... then get the miles point already, today will go and make full payment to the credit card. the drawback is... u pay extra charge for cc payment. but worth it! that few XX dollars for that miles points.

 

[ShiNn]

I think a tele is useful for street portrait in the sense that you can blur the background if you open up the aperture.

As for renting the lens, you might as well buy it and then sell it off if you don't like it. I think it will work out to be the same. Don't forget the hassle of collecting and returning the lens.

The risk of paying it by installment isn't that high, considering the 70-200 is only about $900. And the TS can always sell it off. That's the nice part about buying L lens

the monthly instalment will add up to $87.50 per month... im considering to buy it cause of the hassle of renting it. sometimes i have some last min shoots, which i might not be able to make it to rent.

however, there's a downside to it. even though after selling off my lens. i got the cash, but i still need to continue the instalment till the time is up. i cant clear off my instalment b4 that 1 year period. (if im taking a 12months instalment plan)

 

[evilorgi]

I thought paying via installment is advantageous even if you need to pay a lil interest? Can any economist here explain this?

in a way you are right to say this. because consider the theorem of "time value of money", money worth today is always worth more than the money tomorrow.

this is due to:
1) money today can be "employed" to earn more money such as investment returns and interest regardless the sum.
2) money of tomorrow always subject to a inflation rate which makes the later you pay, the "lesser" you pay

however these 2 points above doesnt really make sense in layman terms. all ppl see is probably still paying the same sum and also majority of the population doesnt employ their money to work except leaving it inside a savings acct to earn that pathetic interest.

therefore, while you are right to say that it's advantageous to pay via installments even a lil interest is charged. however this is only advantageous if your money can be put to better use some where else!

if not, just pay up 1 lump sum @ 1 go, and not going thru the agony of seeing the bill every mth for the rest of the installment term... right now, i am regretting over my decision of paying for my 7D via installment, i should have withdrawn the money and pay cash 1 go...

 

[ManWearPants]

yah, me too all cash.. except for this 70-200 f/4L USM. need it by june to go vietnam..

no time to go n start saving man

Seriously, if photography is a hobby and you need to use credit card to buy this lens, then I would suggest you to reconsider your priorities. 24% interests is not a joke. Your $1k lens with become more than $1.3k at the end of 12 months. I am sure your 17-40 would be more useful in capturing street life.

i want to do a more ppl style photography this trip. taking more pics of the culture there.

i am already reducing the load by not going to bring my tripod n maybe flash. need to rethink of my gears again.

I think tripod is definitely a must for travel. Flash is up to you. I don't know about others. But most of the people portrait that I have taken are usually discarded unless they are doing something that is worth the shot. If it is that old lady selling food, the young boy asking for money type, I usually don't bother anymore. To understand the culture, you don't need the 70-200. Go and befriend a girl for $1k and you will know more about more about the culture than you need to.

actually there is a good way.

if u got the cash, dun pay cash. pay by credit card. then pay in full next day to the credit card hahah... can earn points!

i just bought 35mm yesterday and pay in full using my premier miles card... then get the miles point already, today will go and make full payment to the credit card. the drawback is... u pay extra charge for cc payment. but worth it! that few XX dollars for that miles points.

Sometimes I wonder if miles earned this way are worth it? You are usually charged 3% more for credit card payment, isn't it? I would rather save that 3% than to earn miles.

 

[Sivakis]

Just a quick 2 cents on instalment plans - for those who are unfamiliar.

Let's take an example of a $2,400 item (for ease of calculation) and paid for on a 12-month instalment plan. Your monthly payment would be $200.00 across 12 months.

First off, your CC must have enough available credit for the entire $2,400. This amount is then "locked out". So if you have a credit limit of $10,000, it's effectively locked down to $7,600 at the point of charging. Your credit limit then increases by $200 every month that you make the payment of your instalment.

Secondly, if you miss out on a payment, the interest charged will not be on the $200 that you are supposed to pay. It's calculated based on the total outstanding left in your instalment plan. So if you paid for the 1st month and forgot to pay the 2nd month, the interest charged would be based on ($200*no. of payments left), or $2,200. This, you definitely need to know.

Thirdly, as mentioned earlier, instalment plans earn you 0 points.

To me, the longer the instalment plan = the higher the risk is that I'll forget to pay 1 of them and also = the more chances the banks have to earn extra. Why do you think banks are so eager these days to offer 6, 9, 12, 24 month interest free instalment? They're baiting with long lines to catch their fish.

 

[alvin81]

I paid for my D90 + kit lens using interest-free installment with DBS Credit Card. 12 months period.

 

[ManWearPants]

To me, the longer the instalment plan = the higher the risk is that I'll forget to pay 1 of them and also = the more chances the banks have to earn extra. Why do you think banks are so eager these days to offer 6, 9, 12, 24 month interest free instalment? They're baiting with long lines to catch their fish.

That is assuming you are not going to charge anything else to the card or start another installment on something else. There are a lot of temptations in life. If you think you cannot resist 1k, good luck.

 

[sinned79]

Sometimes I wonder if miles earned this way are worth it? You are usually charged 3% more for credit card payment, isn't it? I would rather save that 3% than to earn miles.

ok lah for me... i dun spend alot on cc except buying camera stuffs haha... cos its the best time for me to whack on miles points... if not those xx or xxx dollars... dunno accumulate until when then can redeem an air ticket.

 

[ed9119]

installment is ok what..... I normally sell my kidney or blood to raise money for equiptment :bigeyes:

 

[Tupi Guy]

installment is ok what..... I normally sell my kidney or blood to raise money for equiptment :bigeyes:

u still not that bad.... they rejected my kidney and blood......:embrass::cry:

 

[ManWearPants]

ok lah for me... i dun spend alot on cc except buying camera stuffs haha... cos its the best time for me to whack on miles points... if not those xx or xxx dollars... dunno accumulate until when then can redeem an air ticket.

if you calculate the amount of points required to redeemed a ticket, you are probably better off buying the ticket outright.

Anyway, credit cards are umbrellas for sunny days. When the rain comes down on you, they will take back the umbrella. I only use them and clear them off immediately.

 

[sinned79]

if you calculate the amount of points required to redeemed a ticket, you are probably better off buying the ticket outright.

Anyway, credit cards are umbrellas for sunny days. When the rain comes down on you, they will take back the umbrella. I only use them and clear them off immediately.

ohh... different mah, if i spend on lens, i get to use, can get points also. 1 stone kill two bird. if i pay by cash, i dun have points, but save that xx dollars haha. anyway after i pay by cc, i will pay in full the next day.

 

[ShiNn]

Seriously, if photography is a hobby and you need to use credit card to buy this lens, then I would suggest you to reconsider your priorities. 24% interests is not a joke. Your $1k lens with become more than $1.3k at the end of 12 months. I am sure your 17-40 would be more useful in capturing street life.




I think tripod is definitely a must for travel. Flash is up to you. I don't know about others. But most of the people portrait that I have taken are usually discarded unless they are doing something that is worth the shot. If it is that old lady selling food, the young boy asking for money type, I usually don't bother anymore. To understand the culture, you don't need the 70-200. Go and befriend a girl for $1k and you will know more about more about the culture than you need to.



Sometimes I wonder if miles earned this way are worth it? You are usually charged 3% more for credit card payment, isn't it? I would rather save that 3% than to earn miles.

its 0% interest. so effectively i am only paying $1050 at the end of 12 months. however what i need is more than a portrait lens, with telephoto quality. i just wanna shoot the lifestyle of them.

 

[ShiNn]

ohh... different mah, if i spend on lens, i get to use, can get points also. 1 stone kill two bird. if i pay by cash, i dun have points, but save that xx dollars haha. anyway after i pay by cc, i will pay in full the next day.

different ppl has diff way to settling their payment, but i think you are paying the extra just for the miles points.

 

[ShiNn]

I would still like to reiterate. I think instalment plans are for those who is disciplined enough to manage their own finances. It has its pros and cons to it.

Credit Card is like a double edge sword. if u know how to use it, it will be to your advantage. if you are not disciplined enough, then u will fall prey to it.

BOTTOM LINE: discipline and financial planning.

 

[ManWearPants]

I would still like to reiterate. I think instalment plans are for those who is disciplined enough to manage their own finances. It has its pros and cons to it.

Credit Card is like a double edge sword. if u know how to use it, it will be to your advantage. if you are not disciplined enough, then u will fall prey to it.

BOTTOM LINE: discipline and financial planning.

ok lah. This is not a financial management thread and since you have a credit card, you are old enough to managed it. But seriously, I would think a 70-200 f4 IS is more useful. How about putting slightly more on credit. And a fast lens would render creamy bokeh and make your subject pop. Add a Sigma 50 f1.4. Extend the loan to 24 months. It is 0% interests anyway. Your debt will shrink with each passing month while your salary is likely to grow. You may even offer to pay off the loan in advance. ok. That's the plan. Just do it!

BTW, I don't concur with the statement credit card is a double edge sword in your context. Much as what the little devil has been whispering into your left ear about discipline and planning. The angel on your right ear should have told you these are 2 of human's weakness. You take a loan for housing, cars, education, wedding, etc - big ticket items. But you don't take a loan to buy a toy. It is not a good habit to cultivate.

And to answer your initial question. I will use credit card to pay for a lens but will never use it as an loan instrument.

 

[ShiNn]

ok lah. This is not a financial management thread and since you have a credit card, you are old enough to managed it. But seriously, I would think a 70-200 f4 IS is more useful. How about putting slightly more on credit. And a fast lens would render creamy bokeh and make your subject pop. Add a Sigma 50 f1.4. Extend the loan to 24 months. It is 0% interests anyway. Your debt will shrink with each passing month while your salary is likely to grow. You may even offer to pay off the loan in advance. ok. That's the plan. Just do it!

BTW, I don't concur with the statement credit card is a double edge sword in your context. Much as what the little devil has been whispering into your left ear about discipline and planning. The angel on your right ear should have told you these are 2 of human's weakness. You take a loan for housing, cars, education, wedding, etc - big ticket items. But you don't take a loan to buy a toy. It is not a good habit to cultivate.

And to answer your initial question. I will use credit card to pay for a lens but will never use it as an loan instrument.

well, your statement is seems like if u are going to big big ticket items when u think with every increasing months of the loan will take ur debt lower and PERHAPS your salary MIGHT grow. you are on the downside of it. buy what you need, not what you want.

i agree with u that f/2.8 lens is good, but do u need it? if u r just shooting for hobby. unless you are some rich guy. so why bother taking a loan?

 

[ManWearPants]

well, your statement is seems like if u are going to big big ticket items when u think with every increasing months of the loan will take ur debt lower and PERHAPS your salary MIGHT grow. you are on the downside of it. buy what you need, not what you want.

i agree with u that f/2.8 lens is good, but do u need it? if u r just shooting for hobby. unless you are some rich guy. so why bother taking a loan?

???...I think you missed the point. Anyway, enjoy your lens.

 

[sensornoise]

I think evilorgi's post made the most sense. In other words, unless you are sure you can put your money into good use, then paying via installment makes no big difference from paying lump sum.

in a way you are right to say this. because consider the theorem of "time value of money", money worth today is always worth more than the money tomorrow.

this is due to:
1) money today can be "employed" to earn more money such as investment returns and interest regardless the sum.
2) money of tomorrow always subject to a inflation rate which makes the later you pay, the "lesser" you pay

however these 2 points above doesnt really make sense in layman terms. all ppl see is probably still paying the same sum and also majority of the population doesnt employ their money to work except leaving it inside a savings acct to earn that pathetic interest.

therefore, while you are right to say that it's advantageous to pay via installments even a lil interest is charged. however this is only advantageous if your money can be put to better use some where else!

if not, just pay up 1 lump sum @ 1 go, and not going thru the agony of seeing the bill every mth for the rest of the installment term... right now, i am regretting over my decision of paying for my 7D via installment, i should have withdrawn the money and pay cash 1 go...

 

[ManWearPants]

I think evilorgi's post made the most sense. In other words, unless you are sure you can put your money into good use, then paying via installment makes no big difference from paying lump sum.

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.