In online shopping, more and more purchases can be made in installments. But not only for large purchases, but also for clothes.
Milena KalinEditor Economics
Shopping addiction gets little attention. Because consumption is desired by society. No wonder there is more and more advertising for installment payments and small loans. However, there is a great risk of spending money that you actually don’t have.
“If installment payments are already needed for everyday purchases such as clothes and furniture, it becomes difficult,” says Sara Stalder (56), director of the Consumer Protection Foundation. In order to keep track of expenses, it is better to avoid paying in installments. “Even a lot of small livestock makes crap.”
Means: Even many small installments can blow the budget. On the other hand, if you have a tight budget, installment payments would make sense for larger, mandatory purchases such as further education.
The attraction is great
Installment payments are a great temptation, especially for shopaholics. And those who like to spend their money online can do so at any time of the day or night.
For example at Brack.ch. The online shop has been offering installment payments in three monthly installments for a fee of CHF 24 since 2016. “We have had good experiences with it. The payments are respected,” says a spokesman on request. About one percent of all Brack.ch orders are purchased on installments. The proportion has not changed in recent years. But: “There are people who accept the payment of the fee for installment purchases for smaller purchases,” says the spokesman.
As with purchases on account, a creditworthiness assessment is carried out when purchasing on installments. An external credit agency carries out this based on the data available to them. Brack.ch then decides whether the person can be supplied against invoice or payment in installments. The problem: According to Sara Stalder, the creditworthiness checks are inadequate.
risk credit card
Even with a credit card, you can spend more money than you actually have. But be careful: If you miss a credit card bill, it can quickly become expensive. Because the interest on arrears has it all. “The companies do good business with it,” says Stalder.
The comparison service Comparis shows that default interest on credit cards ranges between nine and twelve percent. So if you miss a bill of 1000 francs, you will quickly add 100 francs if you are late.
The question is whether a credit card is still worthwhile at all. “If you don’t travel abroad regularly, a credit card isn’t worth it,” says Stalder. Because the new debit card can also be used to pay online.
If you still want a credit card, you should be careful with the limit. Also for your own protection if the card is stolen. A budget plan can help.
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Online shops have no overview
In general, it is difficult for online shops to react to shopping addiction. “As long as they pay for these purchases in advance, with electronic means of payment or credit cards, we don’t notice any of these people’s shopping addiction,” says Digitec Galaxus. Because the online shops have received their money.
Another problem: “We have customers who order for the whole family and friends. That’s why we can hardly tell if someone is ordering a lot,” says Zalando. With various online shops such as Interdiscount, Digitec Galaxus, Brack.ch and Zalando, you can also have the purchase on account blocked in the customer account.