Many major retailers now offer the ability to pay for purchases in installments. Companies like Klarna, Afterpay, and Affirm offer customers the ability to split purchases into smaller, regular monthly payments. Even PayPal has started to provide a buy now, pay later plan. In addition, many companies don’t charge interest rates, making them attractive options. And when you are making a larger purchase, the opportunity to pay less at the moment is pretty tempting. When considering paying in installments versus upfront, it’s important to consider your financial situation and purchase price.
Consider Your Finances
You know your financial situation best. Look at your income versus regular spending and determine if you can manage the installment payments. Will they make your budget too tight, or can you comfortably make payments on time? Remember, just because these plans don’t always charge interest doesn't mean they won’t hit you with late fees for missing a payment.
Also, consider how much you have in the bank now. Do you need to pay in installments, or do you have enough to cover the purchase? Some people are diligent about their budgets and would like to plan for smaller, regular payments. Others would prefer to pay the total amount immediately and not worry about it later.
How Much Are You Spending?
If you are spending a hundred dollars or so buying clothes online but have the money in your bank, you probably don’t need to pay in installments. Likewise, if you purchase something smaller and can afford to pay the total amount, you probably should avoid an installment plan.
However, a payment plan can be the best way to purchase more expensive technology. For example, if you need a new phone or computer, you might not be in a situation to pay $1,000+ upfront. Instead, you can plan for regular, reasonable payments by enrolling in an installment payment plan.
The Bottom Line: Installments Versus Upfront
An installment payment plan makes purchasing expensive furniture, appliances, and technology more accessible for many people. If you need an expensive new gadget or other product, an installment plan could help you make a purchase. In addition, they allow you to add a regular payment to your monthly budget to pay for your purchase without compromising your current financial situation.
On the other hand, you shouldn’t use an installment plan to purchase things you can comfortably afford upfront. If you can afford the total sum, it may be better to pay it off and not worry about making any subsequent payments. When deciding installments versus upfront payments, you must know your financial situation and what you can comfortably afford at the moment and on a regular basis.
Whether you pay upfront or in installments, you’ll want to ensure you get years of use when you purchase an expensive new device or appliance. Unfortunately, however, many devices are prone to defects and damage. So after spending money to buy your device, you don’t want to spend money to repair it. Or worse, replace it.
An extended warranty
is the best way to protect your devices and appliances, so you don’t have to pay expensive repair fees. Many retailers will try to offer you their extended warranty upon purchase, but they are typically extremely overpriced.
Save Money With Upsie
In contrast, Upsie offers extended warranty plans
that are more affordable and just as comprehensive as plans offered by competitors.
Depending on the device, you can choose a 2-year, 3-year, or 5-year plan, which can cover everything from wear to manufacturing defects. Many of Upsie’s warranty plans also include accidental damage protection to protect against drops, spills, and cracks.
Upsie also offers a Smartphone Subscription Warranty that costs just $9.99 per month. This subscription warranty also has a $0 cracked screen deductible.
In addition to damage and defect protection, an Upsie plan will give you access to a dedicated team of customer service representatives who will help you make your claim and schedule a repair. The call center is open 24/7/365, so you can call as soon as your device breaks, no matter what day or time. For smaller devices, Upsie will help you schedule a repair with a local certified technician, or you can choose to mail it to Upsie’s repair center with free 2-day round trip shipping. For larger appliances, Upsie can help you schedule an in-home repair.
No matter how you pay for your new device or appliance, ensure you won’t lose money on expensive repair fees. Instead, purchase an Upsie extended warranty to protect your device while saving money.
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