In today’s society, having the best of everything is a mark of status, but it comes with a high price tag.
As such, many consumers choose to spread the cost of their purchases by taking out a finance option.
This could be through the provider themselves, or it could be through a third-party. With so many consumers now choosing short-term financing options to pay for their purchases, there are a variety of options on the market.
To help you find the option that suits you, here are some tips on how you can find the perfect finance solution to suit every major purchase.
A House
Buying a house is the biggest purchase most individuals consider, and thanks to the huge cost, you’re probably going to need to take out a mortgage. Most estate agents work with a mortgage broker, so you can find out about some of the options on the market; but remember that they’ve always got an agenda. Review all of the options online to see every solution that’s out there currently. Some banks may offer a better deal to existing customers, so speak to your bank to find out what rates they can provide.
A Mobile Phone
Some smartphones can cost over £1000, so it’s understandable that many buyers would consider taking out a contract to spread the expense, consolidate the cost of the handset with the price of connectivity and, potentially, save themselves money. There are a variety of phone contracts out there, some of which come with free gifts such as a phone accessory or free minutes to entice customers, making it hard to understand the value of the contract. Work out if it would be worth it by exploring the cost of buying the phone outright and taking on a SIM only deal, then comparing it with the cost of the contracts you’re being offered. Some providers let you haggle the price of your phone contract, so consider doing this to get yourself a good price for your new handset.
Furniture
Expensive items of furniture, such as sofas and new appliances, are kept for a long time but are often a significant investment in the beginning. Many furniture stores will offer you credit options but check that these do not come with large interest rates. If you pay a lot of interest, then you’ll end up paying more for the item. If you can’t find a finance option that doesn’t include a hefty interest rate, then consider putting your furniture on a credit card with a 0% interest rate, so that you can spread the cost without paying extra for the privilege.
Home Improvements
Improving your home can be an exciting adventure, but it’s also expensive and time consuming. You’ll need to make sure that you invest in professional support and the best possible materials, so that your home remains a safe sanctuary for many years to come. Consider taking out a personal loan to cover the costs and ensure that you’re able to pay for the quality renovations you want. Citrus Loans allows you to search through a range of loan companies and find the option that’s best for you.
Designer Clothing
Designer labels are a luxury that many consumers struggle to afford, but there are now many ‘buy now, pay later’ options offered by outlets and designers that means you can buy your items on credit. Whilst the payment length is often very generous, it usually comes with a high interest rate, so again consider putting your designer items on a credit card with 0% interest if you’re unable to pay the full balance immediately. If you’re unable to afford your purchases, consider waiting until you can, or selecting cheaper clothing products. There are now a wide variety of clothing brands that offer cost-effective products that are higher quality than cheaper clothing, but without the renown of high-end designer names. Consider choosing these products to give yourself the same quality without the high price.
A New Car
Cars are expensive but vital for many consumers, so you can spread the cost of yours by buying it on finance. There are many different finance options out there, including hire purchase, personal contract purchase and leasing. With nine out of ten car buyers admitting that they’re confused by car finance options, it’s clear that you need to do your research and really explore the options available to you to make sure that you get the best possible deal. Think about how long the car will last and the depreciation in value it will go through over its lifetime to work out if your finance solution is cost-effective and viable. Get gap insurance to ensure that if your car is written-off, your insurance provider will repay you the money you paid for your car, rather than its current value.
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