In a high regime inflation like the one experienced in Argentina, with an inflation of 100% annually, it is increasingly necessary to resort to a series of tools to manage money. In this case, with the Cyber Monday And with the number of offers there are, many consumers began to doubt whether fixed installments, interest-free installments or paying in cash are more convenient. In this note we give you an option to find out.
In 2020, a group of Argentines created Inflate (https://infleta.com.ar/funcionamiento) a web page that allows you to calculate when it is appropriate to pay for a product or service in installments and when not.
The Infleta website is very easy to use. As soon as you enter, you will find the form to generate your calculation and you only have to complete three spaces: the cash price of the product you want to buy, the number of installments and the total price in installments. With the information that the website has estimated monthly inflation (currently, for example, it calculates 146.3% annually), Infleta does the math and gives you an answer.
In this way, the website can help us make a decision when a product or service offers installments with interest as a form of payment. Of course, when the option are interest-free installments, It always suits us. However, it is important to highlight that the inflation calculated by Infleta is only a estimate and that all this makes sense if our income is also updated as the months go by. If we buy a product in several installments but, in the future, our salary does not increase, then the accounts would not make as much sense.
The decision we make will depend on the cost of running out of cash that we could invest elsewhere. If he opportunity cost of not using that money on something else is low, so Paying in installments may be a viable option. However, if we have the possibility of having the full amount of money and do not want to incur more debt, it is advisable to opt for cash payment.
The post first appeared on www.ambito.com