Yaroslavl residents were told what it is to pay for a purchase in installments – Yarreg

Some online stores offer customers not to pay the entire amount for the purchase at once, but to divide it into parts and repay without overpayment. What are the benefits of this method for the buyer, are there any pitfalls here, says Evgeny Efremov, an expert at the Yaroslavl branch of the Bank of Russia.

“Buy now, pay later.” This is how this form of payment is translated into Russian. The cost of the product is divided into several equal parts – two, three, four, etc. At the time of purchase, you pay only the first of them, and the remaining parts are automatically debited from the card at a certain interval. For example, once every two weeks. As a result, you pay for your purchase in full within a month and a half. In this case, the seller receives money for his goods immediately in full. So far, such payment is more developed in online trading.

Overpayment for goods. The service partner takes a commission from the store for its services. But in many cases the buyer does not pay anything above the cost of the goods if he makes all payments on time. This is beneficial for the store, as its sales increase. This can also be beneficial for the buyer, since for many it is easier to stretch one significant payment into several small ones.

Difference from loan/credit card. When paying in installments, you automatically enter into an agency agreement with a partner company, and when lending, an agreement with a bank or microfinance organization. Payment in installments has a fairly short period without overpayment (1.5 – 2 months). Credit cards with an interest-free period and installment cards allow you to stretch the payment over six months to a year. And POS loans are for a longer period.

What should you pay attention to? For information about commissions and overpayments. Usually there are none if you make contributions on time. As a rule, next to the full price of the product it is indicated how much must be transferred immediately and how often the remaining payments will be debited. Before each debit, the service usually sends a reminder about the upcoming payment, and also allows you to pay off the entire remaining amount at any time or make another payment ahead of schedule.

But sellers often offer several payment options at once. Let’s say you make payments for 2 months without interest or extend them over 4 months, but with a commission. In conversion, it turns out to be approximately the same as for a bank loan.

What happens if the payment is late? As a rule, such clients are included in the list of unscrupulous buyers. He will no longer be able to pay in installments for purchases in this store and from other service partners. If a person does not return the money on time, the debtor will be charged fines, the amount of which will also be indicated in the contract. If it is not possible to return the money peacefully, the company may go to court or to debt collectors, if this is provided for in the contract.

Useful tips. Please read all documents carefully. Pay attention to the size of the contributions, to whom you will repay the debt, in what period, under what conditions. You need to find out whether interest will accrue and what fines will be imposed in case of delay. This is the only way you will understand exactly what you are agreeing to and will be able to avoid unpleasant surprises.

The ease of buying in parts can provoke a person into thoughtless spending. If the buyer’s financial discipline is poor, then there is a risk of succumbing to temptation and making unnecessary purchases that will be regretted. Therefore, before any purchase, weigh the pros and cons.