Loans and debt: borrow wiselyStep 1 of 6
Installments and “buy now, pay later”
The hidden cost of “0%” installments, markups built into the price, buy-now-pay-later services and what happens if you pay late.
Is “0%” free?
Leyla is choosing a phone at MegaMarket. The price tag says cash — 1,000 AZN. Next to it, in bright letters: “12-month installments, 0%! Just 95.83 AZN a month”. Looks very convenient. But let’s do the maths.
Question
How much will Leyla pay in total with installments, and how much more than in cash?