A payment plan is essentially a regular unsecured consumer loan. The product is purchased and paid for on time. This is the main disadvantage. BitRiver economist and communications director Andrey Loboda told the details to the Prime agency.
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He pointed out that the payment plan, regardless of who provided it to you, is included in your credit history and, in case of delay, it will also ruin this history, just like a loan not repaid on time.
“It also increases your debt load, which may affect banks’ approval of loans in the future until you pay them off,” the expert said.
In the case of a store installment plan, the expert advises not to think that there will be no hidden interests or additional conditions. Typically, the partner bank delivers money to the establishment. Conditions may, for example, include a requirement to obtain insurance. If you reject it, the interest will be the same as that of a loan.
Special tricks include installment payment plans at a store or market. He lends you money nominally. Only holders of bonus cards from a store or market can apply. It is also necessary to treat them with care. An installment card issued by the banks themselves could be a very compromised option.
Andrei Loboda recommends not immediately accepting “favorable” conditions, but thinking carefully and weighing everything. Installment plans, in his opinion, are convenient when they are contracted for a period of no more than six months and up to 10% of the family budget is allocated to their payment.
We previously wrote that in May Russians obtained a record number of loans for the construction of individual homes. One in five loans from large Russian banks was granted for these purposes.
Author:
Nikolai Tikhonov
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
