IT, Tech, Computers
July 24, 2014,Posted by: Admin
Let’s paint a scenario, you were taking a walk through town and happened to find yourself in a store that deals in computers. It’s cool because guess what? You’ve been looking to get one of those bad boys yourself. You browse through for a while and then with angel harps playing in your mind, you spot the computer of your dreams. It has more memory than you could need and awesome preinstalled programs topped off by a widescreen, just like you’ve fantasized about. But hold on, there’s a problem. You look closer. Yes, a big problem.
The problem is the price. Now come on, something that beautiful and technologically sound is surely going to be expensive. Now, if your heart is still bent on getting this beauty, there are some options you could explore. You could pawn of your valuables to raise money, you could ask your friends to contribute, or maybe, you could choose to finance.
Financing something you intend to buy, in this case, the computer is basically leasing the item until you complete your payment after which it becomes fully yours. For example, if this dream machine were to be like $1,000 and you can only afford about $600, then you could pay what you have and finance the balance. Conversely, you could finance everything.
The decision to finance is a huge decision and before it is made, the maker needs to understand what makes it such a huge decision and the likely scenarios that may arise. When an item is bought by financing, the buyer is charged a certain amount of interest. The interest rate differ based on the type of purchases. Customer purchases come with higher interest and by the time you are done paying, you would have parted with more money than you initially would have, as a result of that interest.
Before you choose to finance, make sure you study your credit card rate against the interest rate given for the purchase to be financed, then select the cheaper option. Conversely, you could keep the money in an account that bears interest and have your money grow considerably thereby saving yourself a good amount of cash.