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The acquisition of goods and services on credit became onefrom the signs of modern life. Today, few people prefer to save money for a long time, because it's much easier to go to the store and take a loan on loan or installment.

Installment: easy and convenient

The installment mechanism provided by thedirectly by the store, is simple enough. Its main advantage is transparency and the absence of additional conditions. In installments usually purchased inexpensive furniture, household appliances, mobile phones. The buyer chooses a product and pays a part of its value. The rest of the money is paid in equal parts to the account of the store for a certain period of time. If the buyer has stopped paying the fees, the store has the right to take the goods back, except when the buyer has already paid more than half of the cost for it. However, usually the store prefers not to withdraw the goods taken in installments, but to recover the rest of the money in other ways.

Credit: available and in earnest

Credit for goods are not provided by tradingnetwork, and the bank, so the purchase of goods on these terms is accompanied by the conclusion of a loan agreement. It indicates all the essential parameters of the loan (amount, interest rate, repayment period), as well as the specifics of its servicing and repayment. If an expensive product is taken on credit, for example, a car, a collateral agreement is normally drawn up on it. Monthly loan payments are made to the bank account. If the repayment of interest and principal for any reason terminates, the credit institution begins to charge penalties and fines, while taking all available measures to collect the debt.

What to prefer: installment or credit?

Installment is a commercial loan, andcredit in the outlet - target or consumer. In fact, the difference between them is only in the full value of the loan and in terms of its repayment. In favor of installments says a lower or zero interest rate and a minimum number of documents for registration, in favor of a loan - a higher amount and a longer period of borrowing. A thoughtful comparison of these parameters and the total cost of the goods, taking into account all possible overpayments, will make the right choice between the loan and installments.