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Anonymous

22 Jan 2021

Credit Cards

Would you pay through instalments to reduce the immediate costs, or pay the full amount to earn a higher cashback?

E.g I have 2.5k in the bank and I want to buy a slightly costly item (e.g 1k). Should I pay by 0% installment to reduce the pain on the wallet or full amount by credit card so I can earn the cashback. What would you do in the case and why? Btw, I am working so have monthly income.

Discussion (6)

What are your thoughts?

KY

Kar Yee

22 Jan 2021

Chemistry and Biological Chemistry at Nanyang Technological University

If the item is not an urgent need, I would prefer to pay in full and not installments because it forces me to set aside enough money so I know I actually afford the item rather than going into debt. Even if it's 0% installment I guess I prefer the feeling of paying it off at once and not having to keep track of more recurring bills and payments.

AT

Alexandria T.

02 Jul 2020

Media and Communications at Queensland University of Technology

Speaking from personal experience, I would pay through instalments ( granted that it is at a 0% interest rate), especially if we are talking big ticket necessities that wouldn't normally fit into my monthly budget. Paying via instalments will allow me to fit the item's cost into my monthly budget and also keeps me accountable for the item I have purchased. I've seen a few paymemt providers that allow consumers to purchase using this method and the one I've been using for some time is hoolah. Think they are a local company and so far so good, their checkout process is quite seamless and their store directory is quite vast. You can check them out if you're interested, if not there is always the instalment option via credit cards and banks - which I find can be quite shady. So just be careful when choosing!

Elijah Lee

Elijah Lee

10 Mar 2020

Independent Financial Advisor at Phillip Securities (Jurong East)

Hi anon,

I would just pay in full. There is no reason to pay in installments if you can afford it. ...

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