Originally Posted by
wolfchild
Avoiding monthly payments allows you so save more money each month which can be put into savings and have more disposable income for other things. I would never purchase a $10 000 bike on credit because a $ 2000 -$3000 dollar bike is all I really need and I can buy that for cash and eliminate unnecessary monthly payments.
It doesn’t matter whether it’s £10k or £2k when it comes to the concept of interest free credit being better than paying 100% cash up-front. Avoiding monthly payments by effectively paying all of the monthly payments in one hit at the start is not really avoiding anything. The bike still costs you exactly the same either way. Whether you can afford £10k or £2k is an entirely different matter.
If you are smart about using interest free credit then you actually have more savings during the period of the credit. Where people tend to go wrong is buy things on credit that they cannot actually afford. But again that’s another matter entirely.