Bought a new netbook as my laptop is starting to give me some problems. Happily bought it at $498, plus 2 yrs extended warranty at Harvey Norman at additional $52 (which makes a total of 3 yrs warranty) with a installment of 3 years. I think many will frown at me. It's just a few hundred dollars and why pay by installment? I dun like installment previously, cos I dun like to owe people things. But the fact that it's a 0% interest installment, which change the ball game. Yes, I have 2 choices. First is to pay full and call it a day. I pay $550 (498 +$52) and take it home. Second, I pay by installment for 36 months. The first month I pay abt $15, which means that the remaining $535 is helping me to earn interest. Another month I pay another $15, and the remaining $520 is still working hard for me and earning interest and so on and so forth. So end of the day, I pay less than $550.
Those without financial management and knowledge should steer clear of installments. Installment is like a slow acting poison, slowly killing u without u knowing, if u dunno how to manage them. It can be something big and dangerous, disguising as something harmless and slowly draining u away. It is a double edged sword. U use it well, it helps u save money. U use it wrongly, it'll cause ur downfall.
There's good debts and bad debts. Not all debts are bad.
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