How Can I Afford a Computer?

If you need a computer then you may wonder how you are going to be able to afford to buy one. Computers can be expensive and if you want one that is fast and capable of doing a lot then you will have to pay out a significant amount of money for it. This means that there is a chance that you will not be able to easily afford it and may wonder how you are going to manage.

Use savings

If you have savings you might be able to use them for buying the computer. It is a good thing to do in some ways as you will not have to pay the extra money associated with the costs of borrowing. However, you may be reluctant to use your savings. This is because you may have spent a lot of time and effort saving that money. It could be that you were hoping to use the money to buy something specific or that you were keeping it for an emergency and therefore feel reluctant to use it to pay for the computer. It is worth considering the pros and cons of using the money for this purpose as you will better be able to decide whether or not you feel it is the right decision to use the money.

Save up

If you do not have any savings or are reluctant to use the savings that you have, then you could save up some money for the computer. This will also avoid the costs associated with borrowing the money but it will mean that it takes longer. You will have to wait until you have saved up before you can buy the new computer. If your current computer just needs updating then you might be prepared to do this. You will have to think of how you will be able to get the extra money that you need. This might be from earning more money or from spending less.

 However, if you cannot use the computer at all, then you may not be able to wait or you may not be prepared to wait any longer before you get one.

Borrow Money

If you do not have savings to spend and do not have time to save up then you will have to borrow the money to pay for it. There are different loans that might be suitable for this purpose depending on the amount of money that you want to borrow. You may find that the retailer is open to lending you the money and you might be able to get it from a bank as well. It is worth comparing your options to find the one that is most suitable and the cheapest. Try not to borrow more money than necessary as you will be charged interest on it and this will mean that you will be paying more than necessary. Also compare lenders to find the one that is most suitable. Obviously, the interest will be a big factor as you will not want to pay more than you have to. However, it is also wise to look at how big the repayments are as well as you want to make sure that you will be able to afford them. This is really important as it could mean that you will have to not pay for other things so that you can afford the loan repayments. It could be better to pay a bit more for the loan and have smaller repayments that are more manageable. This could make the stress of repaying it disappear and could mean that you will still be able to easily afford everything else that you need or want. This could be well worth paying extra money for. If you are not sure how much you will be repaying then get in touch with the lender as they will be able to let you know. If you compare different lenders you will be able to not only compare how much the loans will cost, which is important, but also what the repayment schedule will be. You might also want to think about the lender and what they are like and if you are happy to use them.

As you can see, there are a selection of options that you could consider if you want to buy a new computer. It is good thinking about them all and deciding which will be the best option for you. It is important to think about the cost of each option but also to decide how urgently you need the computer and which of the options will be the least stressful and most convenient for you. It can be a tricky decision and it is worth taking some time to think about the advantages and disadvantages of each so that you can make the right choice.

Should I use a Credit Card to buy Things?

Some people get very worried about credit cards and feel that they should not be using them when there are others that use them without any concerns at all. If you see a lot of people with no concerns you might think about whether it might be okay for you not to worry about using one either. There are pros and cons to using a credit card and it is worth understanding both before you decide whether having one is the right for you.

Advantages of credit cards

Most shops accept credit cards and they can be a convenient way to pay for things because you do not have to carry cash. You will also get interest free credit on the items that you have bought until you have to pay off the credit card. This means that you can always use the card to pay for things if you run out of money before you next get paid. The cards are also useful because they have insurance built in. This means that if you happen to buy a faulty product and the retailer will not reimburse you then the card issuer will. This can be especially useful if you are buying online when you cannot inspect the product before you buy it. They are also more secure than cash. If they get stolen or your card details get stolen, the card issuer will put a stop on the card and reimburse any stolen money. If you have cash stolen it is very unlikely that you will be able to ever get it back.

Disadvantages of credit cards

The main problem with credit cards is the cost of them. There is sometimes a charge for having a credit card, but most of them are free. However, you will have a limit on how long you can leave the card unpaid. Once you receive your monthly credit card statement you will be told the date that you need to repay it by. If you do not repay by this date you will have to pay interest on what you owe. This is no different to any other loan, although the rates can tend to be quite high. The difference with a credit card is that there is no repayment schedule. As long as you repay the minimum each month, which is effectively usually equivalent to the interest you can keep the loan as long as you wish. If you keep spending on the card and only repaying the minimum, you will end up paying interest on it forever. This can mean that it can be really expensive.

Is a credit card a good idea?

If you are going to use the card to take advantage of the free insurance, security and interest free credit then it is a great idea as long as you repay the balance in full each month. More than half of the people that have credit cards do this and find it works well for them. However, the other half only repay the minimum and then they will be paying interest on what they owe on the card all of the time.

You need to think whether you will have the self-discipline to take advantage of the great things the card has to offer and repay it in full each month. If you set up a direct debit to pay it off then it is more likely that you will be able to repay it all in full each month. However, there is always a risk that you might decide that you want to repay less so that you have the money for other things or that you decide not to set up the direct debit so that you can be more flexible with your repayments. This will enable you to spend a bit more money but it will mean that you will end up paying interest which will cost you money.

Some people will be happy having a card like this but there will be those that know they are taking a risk and that they may end up in debt that they cannot manage. You need to be really honest with yourself and make sure that you are sure that you will be responsible with the card. You will know what you are like when you are spending money and using credit and so you should have a good idea of whether it is wise to get a card. If you have ever had a card before then you can look back to how you found it and think about whether you think you will be responsible this time. If you really have no idea then be cautious. Try to start with a low credit limit so that you cannot spend too much and will be able to manage to repay it without too much difficulty.