Have you ever wondered if it's more advantageous to buy in cash or in installments? The answer is not always based on price alone. There is no right or wrong, as both options can serve well for every moment of your financial life.
In this text, you will learn how to define what is most advantageous, understand what to take into account when buying something, and paying in cash or in installments. Check out!
The survey shows that 42% of respondents pay for purchases in installments whenever possible.
In addition, credit cards are still preferred among existing options when paying. The second of them is the pix, followed by the money, and lastly the debit card.
In recent years, the increase in offers for purchases in installments has facilitated the way for those who want a product or service but cannot pay in cash. Has it ever happened to you? Sometimes, the value is not so high, but the 12 installments seem to make the purchase more attractive.
If, on the one hand, the payment method has been facilitated, on the other hand, the responsibility for paying for purchases is greater. At the end of the day, you will have to “carry” your debt for a longer time or resort to a line of credit to be able to pay it all off.
In some cases, this can be beneficial for your pocket, but not always, right?
Find out how to calculate whether it's better to pay in cash or in installments!
When buying in installments, our brain only sees the weight of that amount in the month. For example, it's one thing to weigh a cash purchase of R$600 in your pocket. It's another to see an installment of R$50 per month. It gives the impression that it won't do so much harm to the pocket, right?
When the card bill arrives and you are startled, it is certainly because there has not been good financial control over the month. So, before even evaluating whether a purchase should be made in cash or in installments, consider:
1. Do I need this product or service right now?
2. Is this location the best value for money compared to competitors?
3. Will this purchase compromise my budget?
5. How many things will I have to give up to cover this cost?
6. If I pay in installments, how many months will my rent be committed?
After considering these points, see if your financial planning is up to date. Update the values of what you received, how much you saved, how much you spent, and what your limit is for new spending.
When you do this control, it becomes easier to plan your purchases and prepare for bigger projects, which also involve higher expenses.
After assessing whether you really need to make this purchase, it is important to consider other points when choosing how to pay. Check out which occasions it is worth buying in cash or in installments:
- When you have the full amount to buy;
- If the purchase does not harm your budget ;
- If the installment purchase has a high interest;
- When you get a discount on cash payments.
- If you really need the product or service and don't have the full amount in sight;
- If you don't get the discount for buying in cash;
- When installment interest rates are low;
- When the installment does not affect the budget and objectives of the other months.
In some establishments, installments between eight and ten installments may be interest-free. Above that, there is an extra charge. In addition, there are companies that allow installments in 24 or even 30 months, on the institutional card. However, this purchase usually has a higher interest charge because of the extended term.
To give you an idea, if you pay in 11 to 12 installments, the interest is around 2% per month. Now, if you make the purchase with the store card between 13 and 30 months, the interest varies between 2.99% and 1.39% per month, applied in a decreasing way.
Is paying in installments worth it? This depends on your financial control and the good you are about to acquire.
The main benefits of paying in cash are:
- You do not compromise the budget for the coming months;
- It is possible to get a discount when paying in cash, either with a debit card, pix or cash;
- It is indicated for those who do not control their finances, which avoids creating debts.
Buying with installments has benefits such as:
- The installment can fit your budget;
- Installment interest can be low and compensate for the purchase in this format;
- It may be worth buying larger goods when you don't have all the value;
- Installing purchases in installments is indicated for those who already follow finances and manage to limit consumption and not compromise the entire budget.
