Difference between token payment and installment plan?

When choosing the method of payment for the purchases we make, we tend to get confused with the bunch of options that we currently have, dapp development company but in general the competition is between two payment methods: credit card (or installment payment) and payment in cash ( or in cash).

We invite you to take into account the type of goods you are acquiring when making this decision, there are products that are definitely not worth paying in installments, and even more so if you have the opportunity to pay in cash.

You can read: How many bank accounts should and can I have?

On the other hand, there are other goods or services that must be deferred to installations so as not to alter economic stability and unbalance the budget, since they are very difficult to acquire in cash, such as housing or education in some cases.

We know that it is an important decision that is difficult to make, that is why in Saber Más, Ser Más we tell you about some of the advantages and differences of paying in cash or in installments.

Advantages of paying cash

Among the advantages that we know of cash payment is that it can be made in cash or by debiting the money from a savings or checking account; Plus, you won’t have to keep up with monthly bill payments with handling fees.

Speaking of money management when we use savings or checking accounts, remember that to withdraw money you have the ATM network of the bank you choose, which will charge you the GMF (the well-known 4 x 1,000) every time you withdraw money; Future in virtual world however, check with your bank because there will be entities that do not charge you this tax or that allow you to be exempt from it after a certain period of time.

If you decide to acquire a debit card, keep in mind that it will charge you a relatively low monthly handling fee for its use, in some cases the use of this card can be done at no cost, the ideal is to make the best decision with the bank.

On the other hand, with the cash payment you eliminate future debts and at the time of purchase you do not pay interest or any other extra charge for the product or service you purchased, in addition, when paying, you have more options to have discounts or negotiate on the final price.

Also, actually seeing cash, rather than just looking at a card with no monetary value of its own, can be a strong reminder to spend less overall and immediately organize your budget as suddenly money is real and really valuable.

Cash payment for security

Few things are scarier than hearing that the store (whether physical or online) that you frequent and in which, by chance, you make card payments ends up having security threats, was hacked or simply by mistake is at the disposal of a criminal anonymous that may have your identity.

Paying in cash eliminates that problem: paper money and small $50 pesos sitting in a cash register mean nothing to online criminal masterminds , while information sent to vulnerable computers via your card, such as Once, it reveals everything and more if you are not an expert in buying from home using the computer or cell phone.

You are interested: How to buy online without being scammed in the attempt?

Advantages of paying in installments or by credit card

On the other hand, paying on credit gives you the possibility of deferring a minimum installment for the acquisition of a good or service, generally the maximum is 36 or 48 installments when the purchase is made with a credit card.

If you plan to buy a house or car, decentralized app developer the maximum time in which the payment will be made is agreed with the commercial and financial establishments and is generally longer, for the mortgage case some financial entities offer up to 20 years of financing.

It is an alternative for those who do not have enough money to purchase goods or services that do not wait. Remember that if you are punctual with your debt payments, you are creating a good credit history , which opens the doors to having future credits and building a good name as a debtor in front of the banks.

Paying with a credit card you have access to relatively high interest rates, depending on the bank you choose, these can range from 17% to 25% annual cash or from 1.3% to 1.7% month in arrears.

About the minimum credit card payment, we invite you to read: How to calculate the minimum credit card payment?

This is important since the interest rate is the charge that the bank will make for the loan of money at the time of purchase. The percentage corresponds to the risk that the entity runs when delivering the money and the administrative expenses involved in making these loans.

Online purchases with a credit card

With a world in which technology has taken over much of our processes, today we can buy ever-increasing amounts of items online and with a credit card: Airline tickets, which are generally much cheaper online; as well as our subscriptions to online services or applications that we must pay yes or yes on the web.

By paying and buying online with a credit card, you have access to promotions that , although they may seem like a bargain, will help you reduce costs when you have to start paying for the product you purchased. These discounts are usually offered by banks as “rewards” to cardholders and range from discounts in stores, miles to travel or discounts to attend exclusive events.

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