Many of us own computers and get quite reliant on them, whether for work, study or entertainment. This means that if one breaks down, then we will want to replace it. This can be costly and so we need to be sure that we can find a way to pay for it. There are various options that we can consider.
If we have some savings then it can be great to use these to pay for the computer. By using these we will be able to buy it quickly and we will not have to pay any extra. However, we will lose out in interest if we use the money, as we will be getting interest on the savings. But, if we borrow the money, the cost of that loan is likely to be very much higher than the lost interest. It is worth checking though, but in most cases this will be true. There are also other advantages of not borrowing, such as the fact that there will be no pressure to make loan repayments each month, although you might want to make some regular monthly payments to top your savings account back up. You might want to do this as much as you can as it is nice to have savings, but of course, you can always draw money out of the savings if you really need it.
If you can wait to buy the computer, then it might be a good idea to save up for it. This can be especially useful if you do not have any savings or do not have enough. This is not always easy though, especially if you are not used to saving or do not usually have enough money to save. Therefore, it can be wise to make sure that you stay motivated. Setting up a direct debit so the money is paid directly into your bank is a good start and then making sure that you do not spend too much money. You might need to think of some ways to earn extra money as well, so that you know that you will be able to save up for it quickly.
Take out a loan
If you do not have any savings and you want or need the computer quickly then a loan could be a good idea. It will mean that you will have to pay interest and perhaps other costs, so that will add on to the cost of the computer. You therefore need to be aware of how much these will be and decide whether you are happy to pay that much extra. You also need to make sure that you know exactly how much you will be expected to repay and when. This will enable you to work out whether you will have enough money to be able to afford to make these repayments.
It might not feel like it should be a big decision, but whenever we buy something, particularly if it is expensive. We should be thinking about how we are going to pay for it and whether we can afford it. It is a good idea to make sure that you will be able to repay any £100 loans we take and that we are also aware of the cost of any loans and feel that it is worth paying that extra money. Every time we buy something we should be asking ourselves whether we think that it is worth the money and whether we really need it. This will enable us to make sure that we do not spend more than can afford and will not buy more than we really need or want.