Buying now, paying later (or even at all) can seem like a great idea, but what if you're not able to make the payments? You may be tempted to forego your loan, but it is not the best course of action.
If you buy something today and then can't pay for it, you lose any benefit of having it in your possession and that's true even if you've already paid for the item! If you pay with a credit card, and then go into debt over the course of several months or years, your credit score will take a hit and it could even affect your ability to rent an apartment or get a loan in the future.
It's also true if you have an installment plan. If you sign up for an installment plan for a car or home purchase, but don't make all of the payments. even if they're made on time. you can find yourself without a car or house. Even worse: You may have to pay more than what was originally agreed upon because interest has accrued since then.
If you buy something today and then can't pay for it, you lose any benefit of having it in your possession and that's true even if you've already paid for the item! If you pay with a credit card, and then go into debt over the course of several months or years, your credit score will take a hit and it could even affect your ability to rent an apartment or get a loan in the future.
It's also true if you have an installment plan. If you sign up for an installment plan for a car or home purchase, but don't make all of the payments. even if they're made on time. you can find yourself without a car or house. Even worse: You may have to pay more than what was originally agreed upon because interest has accrued since then.