Is it better to finance a mobile phone or pay in cash?

It’s time for phone companies to give their customers cell phones as a “gift”. The competition between them is so fierce that the main argument for attracting new customers is to give them a mobile phone if they are carrying it from another company. However, this gift is not free. The customer, instead of a mobile phone, makes a permanent contract with the company (usually two years) and is responsible for maintaining a fixed rate (usually very expensive). This time he was “tied up” with the operator and had to pay extra if he wanted to leave. Now, phone companies don’t offer terminals, so if you want to switch phones, you have to go to the cashier and pay. At this point, many people ask themselves the following questions: Is it better to finance a cell phone or pay in cash with savings?

When is funding suitable for a mobile phone?

Infographics | How to finance a mobile phone Behind the title, this seems to be a ruse, the simple answer is: no matter how much interest is paid on mobile phones or commissions today, these types of interest rates are lower than. Anytime, then you will be lucky and find offers to finance mobile phone purchases with 0% interest and 0% commission. In the absence of small print, financing for purchase in the form of insurance related to the purchase or binding to any other service contract may be a good idea for two reasons:

You pushed back inflation. If you pay the same amount every month with your mobile phone and that bill loses its monthly value due to inflation, in general, you will have less purchasing power due to financing.

You can invest unspent money in cash. If you decide to save money to buy a mobile phone and pay the fees, you can invest that money in the stock market and earn income from it.

From a microfinance point of view, it is a good idea to provide interest or additional financing without. The problem is that you incur new fixed costs: you have to pay monthly 대출

When is it not appropriate to finance a mobile phone?

One of the main benefits of paying for a mobile phone in cash is that when you pay for it, there are no more payments. You will withdraw all the money at once and free yourself from the mental burden of having to pay part of the funding each month (and for several months). So, if you have accumulated money and you do not need it soon, then financial aid and cash payment for a mobile phone purchase is not the best choice. If you have a lot of debt, we do not recommend taking out a new loan. In this case, if you can’t afford it, it’s best not to buy it. Take some time to clean up your home economy, pay off some of your debts, save up to meet your emergency finances, and only then buy a phone. In cases where you will be charged interest or a commission to help finance the phone, using financing is also a good idea because you will have to pay more than you actually spend. Given that mobile phones are declining rapidly, the investment will not be bad. Despite these tips, if you decide to continue financing and pay transfers for your new phone, you should at least calculate the ridiculous price you will have to pay.