Choose Which, Pay Cash Or Credit?
The development of increasingly modern life both in the fields of electronics, fashion, culinary, and entertainment, often demands changes in human lifestyles. Lifestyle becomes important because not a few people make lifestyle a standard of social status. Someone who uses the latest products and branded is considered cooler than people in general, so it is not uncommon for this to result in someone changing his lifestyle to be accepted in certain social circles. This resulted in someone becoming consumptive both with cash and credit payments.
Cash & Credit Differences
Talking about payments in cash and credit, do you know there are several considerations that you can take before deciding to buy goods on credit or cash.
1. Check the resale value of the product purchased
When you will buy products with credit, you should buy products that have high resale value, such as land, apartments, houses, gold, etc. These products will increase in value from day to day, so if you buy with the credit you don’t need to worry about depreciation costs. Conversely, if you buy low-resale value products, such as electronics or fashion, the price of these products will not increase, so you should buy them in cash.
2. Check the type of interest specified, floating or flat interest
Before deciding to buy on credit, you should first check the interest set, whether floating or flat interest. Floating interest means that interest can change, sometimes it falls and sometimes rises, while flat interest is fixed during the specified credit period. Well, you should choose credit that offers flat interest because it is clear and the risk is smaller.
3. Amount of money left if you buy in cash
Besides resale value and interest, what you need to consider is your ability to buy products. For example, you have a savings of Rp 20 million, while you will buy a product worth Rp 17 million, meaning you only have Rp 3 million left. In fact, you need costs for living expenses and anticipating emergency costs. If the case is like this, you should consider buying the product on credit.
4. Percentage of credit installments taken
No less important is the nominal installments that you will pay every month. Before deciding to buy on credit you should also consider, your ability to pay installments, do not let you pay installments with ½ of your income. This will cause your financial stability to be disrupted because you still have expenses other than installments.
Those are some of the things you must consider before choosing to buy products in cash or credit. From day to day, more and more people buy products on credit, but not infrequently buying in cash is more profitable, and vice versa. The four points above will help you be wiser in deciding to buy products in cash or credit, so that lifestyle stays cool without disturbing your financial stability.