essay on advantages and disadvantages of instalments
Answers
• Instalment scheme is a boon to most of the meagre income group. This scheme is specially designed by the companies to lift the living standards of low income group. If a person who earns meagre income and wants to give good facilities to the family or achieve some of his dreams,these schemes help him a lot.
• These schemes let you pay for the things you can not afford or don't have all the money for buying those things. We can decide the cost over a greater period of time to avoid taking the full hit in a month.
• We also have the option to pull out before we have paid the full amount.
• Cheaper than a personal loan.
• Maximise profitability
• Minimal sales task
• Fixed rate
• Provides exit options.
• One can own several things even though they don't have enough money.
Disadvantages of instalment schemes :-
• Instalment schemes are loans on which the borrower has to make monthly principle and interest payments.
• The rate of interest can change any time and if it becomes more,it will become a burden to the payer.
• Instalment loans have larger monthly payments.
• Instalment loans mean long term commitments. A lot can happen in this long-term,at may make us regret of opting these schemes.
• This instalment system makes people extravagant. They get addicted to the habit of unnecessary borrowing which makes their lives tense with unrest.
• Buying things on instalment traps permanently in debt.
• It forces payers to borrow money from some others to pay their monthly instalments. This becomes a cycle of borrowing - paying - borrowing.
• More expensive than actual cost.
• Higher fixed cost per month.
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Hope it helps!!
⭐Snehitha2
Explanation:
Personal installment loans help consumers to avoid lump-sum payments that force many borrowers to renew their loans and fall into debt traps according to report posted at (-- removed HTML --) qz.com (-- removed HTML --) . The report examined a report by Joseph Williams who praised the lifeline that payday loans offered while deploring the lump-sum repayment difficulties that can affect even well-educated and high-salaried borrowers. Payday loan interest rates are high for these short-term loans that only earn interest for…show more content…
According to (-- removed HTML --) loan.com (-- removed HTML --) , the advantages of personal installment loans include:
(-- removed HTML --) (-- removed HTML --) These loans have fixed interest rates and regular payments, which make it easier to work the payments into your budget. (-- removed HTML --) (-- removed HTML --) Most loans are repaid on a monthly or biweekly basis. (-- removed HTML --) (-- removed HTML --) Longer repayment terms mean that borrowers get lower payments. (-- removed HTML --) (-- removed HTML --) Small-dollar personal installment loans usually get a quick approval decision. (-- removed HTML --) (-- removed HTML --) Military travel loans are available for military families. (-- removed HTML --) (-- removed HTML --) Larger loans with low interest rates are available for those with higher credit scores or people who can offer collateral. (-- removed HTML --) (-- removed HTML --)
(-- removed HTML --) Gaining Knowledge of Financial Matters Can Improve Your Fiscal Profile (-- removed HTML --)
Installment loans online can actually serve as an investment when you use the money to avoid late fees or take advantage of a business opportunity or a rare break to save money on a long-term personal goal. Developing a greater knowledge of budgeting