not really an installemt plan?

[hanamegumi]

i admit my financial knowledge is close to zero, forgive me for being an idiot.

so anyway i got a camera in nov on installment plan, 25 a month for 1 year. and today i called the bank since i had some issues about paypal :S

so seems that i have like 1k credit limit (i set it), i have 400 remaining to be paid and 500 outstanding (which i intend to carry over to next month)

my assumption (yes i am the asrse) was that my outstanding should be 500 and not 900.

so can someone please explain to me? maybe upfront payment is still the best?

 

[tatose]

i admit my financial knowledge is close to zero, forgive me for being an idiot.

so anyway i got a camera in nov on installment plan, 25 a month for 1 year. and today i called the bank since i had some issues about paypal :S

so seems that i have like 1k credit limit (i set it), i have 400 remaining to be paid and 500 outstanding (which i intend to carry over to next month)

my assumption (yes i am the asrse) was that my outstanding should be 500 and not 900.

so can someone please explain to me? maybe upfront payment is still the best?

This really depend on what "tools" you use to finance your camera, is it a personal loan? credit card balance? structured credit card loans? installment plans between you and merchant? escrow?

Upfront payment is not always the best (e.g. Terms and Conditions not always better) but in general should be easier to understand.

 

[chopra]

if your financial knowledge is zero, then you should not borrow money. pay in full for everything except house. this includes car.

 

[derrickgoh]

For $300 why would anyone want to go by instalment? Its a small amount. Unless its really huge, if not I rather save up then buy it and pay upfront in full.

 

[hanamegumi]

well it was a $800 camera, thinking back i should have paid in full...

it was installment plans between you and merchant.

 

[tatose]

well it was a $800 camera, thinking back i should have paid in full...

it was installment plans between you and merchant.

In an ideal world, the merchant has the least information about you and probably charge really high interest rates or mark up the price higher than usual lenders - COURTS do that.

Now to reduce risks even further, most merchants rely on banks to conduct due diligence on borrowers. Banks being a bitch makes any unsecured loans pretty much difficult to get if you are not credit worthy.

Whether you want to pay upfront or in installments, don't bring PayPal into the transaction unless you really got no choice. They actually increase the risk of any transactions, both parties end up suffer.

 

[Dividends Warrior]

Launching the First-Ever 40 Months Interest-Free Instalment Payment Plan . Applicable Only to Singapore.

As we usher in 2014, we are pleased to announce the exclusive 40 months interest-free Instalment Payment Plan with DBS/POSB Credit Cards, just for you.

Owning that coveted timepiece is now made easier with this attractive payment plan that translates to lesser repayment every month. What more can we ask for?

Check in-store now for more information. 40-months Instalment Plan is only applicable to Singapore.

Here’s wishing one and all a wonderful 2014!

Yay! I can buy a Rolex now!

 

[tatose]

Launching the First-Ever 40 Months Interest-Free Instalment Payment Plan . Applicable Only to Singapore.

As we usher in 2014, we are pleased to announce the exclusive 40 months interest-free Instalment Payment Plan with DBS/POSB Credit Cards, just for you.

Owning that coveted timepiece is now made easier with this attractive payment plan that translates to lesser repayment every month. What more can we ask for?

Check in-store now for more information. 40-months Instalment Plan is only applicable to Singapore.

Here’s wishing one and all a wonderful 2014!

Yay! I can buy a Rolex now!

Need to read the T&C further, but this look like good stuff. Thanks again DW.

 

[torrent06]

i admit my financial knowledge is close to zero, forgive me for being an idiot.

so anyway i got a camera in nov on installment plan, 25 a month for 1 year. and today i called the bank since i had some issues about paypal :S

so seems that i have like 1k credit limit (i set it), i have 400 remaining to be paid and 500 outstanding (which i intend to carry over to next month)

my assumption (yes i am the asrse) was that my outstanding should be 500 and not 900.

so can someone please explain to me? maybe upfront payment is still the best?

Sorry but I am not getting the whole picture.
The camera costs $800
Installment $25 x 12 = $300
You charged to your card $500 (which you want to roll over. So you are using a credit card?)
But now you owe $900?

For instalment plan with merchant there are interest charges - add up first payment and the installments and the difference is the interest but it shouldn't be as high as $400.
Interest free installments are available with credit cards at selected merchants.

 

[limster]

Sorry but I am not getting the whole picture.
The camera costs $800
Installment $25 x 12 = $300
You charged to your card $500 (which you want to roll over. So you are using a credit card?)
But now you owe $900?

For instalment plan with merchant there are interest charges - add up first payment and the installments and the difference is the interest but it shouldn't be as high as $400.
Interest free installments are available with credit cards at selected merchants.

TS used the words "intend to carry over to next month" Does this mean that TS defaulted on some of the instalments? As far as I know, instalment payment, every month you must pay a fix sum, cannot carry over to next month otherwise you will have to pay a penalty? Did you confirm that you are allowed to not pay instalment for a particular month without penalty?

 

[torrent06]

well it was a $800 camera, thinking back i should have paid in full...

it was installment plans between you and merchant.

It seems more likely you are on a 0% installment plan with the bank if you are checking with your bank the outstanding amount. That means the bank already paid the merchant for the full amount and you repay the bank every month and interest and late charges are incurred if you miss payments. If you were on a plan with the merchant, monthly payment is to the merchant directly by giro, internet banking, cash or cheque.

For a 0% plan, if you have already paid $300, outstanding is $500. The amount that remains to be paid may be referring to the amount due in your current statement which includes other purchases.