Spreading the cost is one great way of paying for things that you want but can’t afford right now. There are both positive and negative aspects to this form of financing, normally available through catalogues. It is important that you understand the pros and cons of this type of payment option, which we will look at in this article, before signing up for anything, to ensure you are making an informed decision.

The Pros
If you are looking through your catalogue and find something you’d like to buy, but can’t afford it; you don’t need to worry as you could opt to spread the cost. By spreading the cost, you agree to pay a minimum amount of money regularly until you have paid the full amount back to the catalogue; instead of paying the total upfront. This is particularly good when you have to purchase high ticket items and when you are buying birthday, Christmas and other gifts.

When celebrations and events come up it can be quite stressful, so knowing there is a flexible way for you to get everything you want and need; can be a great relief.

The Cons
Although spreading the cost of items could be seen as something of a saviour to many people, it can actually be a huge burden to others. If someone gets carried away and purchases too many items on this kind of financing agreement, they could end up with large amounts of debts and nothing else to show for it. This is why self-control is so important, as you should only purchase things that you realistically will be able to pay for in the allotted time.

If you can’t keep up regular payments on things you have ordered on finance to spread the cost, it can negatively affect your credit rating; which can stop you from being able to benefit from this service in the future.

Another negative aspect of spreading the cost is that catalogues in the UK allow customers to pay for things they purchase in this fashion, with interest added on top. Therefore, they would be expected to pay a monthly, fortnightly or weekly amount that includes the broken down price of the item plus the added interest. This obviously adds to the overall cost of the item and can make it a great deal more expensive than it would be if you bought it outright.

As you can see there are clear pros and cons for the payment option of spreading the cost and you need to weigh these up against your own financial situation to figure out if it is worth it or not.