In an ideal world, we would be able to buy anything we wanted at the flip of a coin. But prices are high and look set to keep rising. It is better to pay for some things on finance rather than others. If you buy a bike with bike finance you can spread the cost over a number of months. University fees are good to pay on finance so you have more money to spend whilst studying. Buying a car or a different type of automobile on finance is another good option.
Bike finance is usually charged at a lower value than pricier items. To get a sale, bike dealers are flexible on price and finance deals, so take advantage of this. This is good for people who want a good bike but don’t want to be separated with hundreds of pounds all in one go. The low payments mean that even if you are strapped for cash one month, you should still be able to keep paying the bike off.
Without a student loan, many people who are at university would never have had the chance to go because they couldn’t have afforded it. Without the loans very few people would be able to pay the ever rising tuition fees and pay for rent, food and bills whilst away from home. Because the payments are taken directly from your wage, you notice the money less, because you never had it in the first place. Also, the repayments are minimal, so even people on a relatively small salary can pay off the loan gradually. They are a much nicer form of loan than credit cards.
Buying a car on finance is how most people buy cars nowadays. Because car manufacturers have so many other brands to compete with, you can get a good deal on finance and the price by shopping around and negotiating, which means you can have monthly payments to suit your budget. Because cars are very expensive to run and insure, finance packages are good because you can normally trade your vehicle for a new one after the finance period is over, and you don’t have to pay for services during that time either.
So whilst I would never recommend getting into debt if you could avoid it, and never borrow more than you are realistically going to be able to pay back, finance packages on some things is not only helpful, but can be a cheaper alternative to a basic loan.