If you need a new computer, perhaps because your is out of date or has stopped working or you do not have one and need one, then you may wonder how to pay for it. Computers are not cheap and it is worth considering how you are going to pay because it could make a big difference to the cost and how you will manage once you have paid it.
Borrow the Money
Many people will borrow money when they need to buy something new that is expensive. This is an option that most people are able to consider, although if you have a poor credit rating you may not be able to borrow any money or perhaps only a little bit.
If you do decide to borrow then you should think about which loan will be the best sort for you. Consider how much the computer will be as this will have an influence on which small loans will be the best. Then you need to compare the loans and find out which will be the cheapest. Obviously, it is in your advantage to go for a cheap one, but you should also consider whether you can afford the repayments. You will need to normally make a repayment each month and you need to think about whether you are confident that you will be able to afford the size of the repayment that each loan will require you to make. Even if it is more expensive, it might be advisable to go for a loan that has smaller repayments but more of them as this will be easier to manage. If you miss a repayment, because they are too big to manage, then you will charged more money so it could be more expensive in the long run anyway.
If you have savings, then it will be cheaper to use these to pay for a computer than to borrow money. Although you will be losing out on any interest that you would otherwise get on a savings account, this will normally not be very much compared to the amount that you will need to pay for a loan anyway. It is wise to check though as you need to make sure that you are not getting a high interest rate. Also, if your savings are tied up in a bond or notice account then you may lose quite a lot if you decide to cash them in and use the money to buy something.
Many people are not keen up using their savings this way though. They feel concerned because they like to have that peace of mind that they have some money in case of emergency. This is perfectly understandable but it is worth remembering that you might be able to pay some money back into this account quite quickly and replace the money that you have saved.
You may also be reluctant to spend the money if you have been saving up for something specific. Again, you should be able to repay the money that you use and so it could be well worth it.
If you have no savings, then you might need to think about whether you should save up. This may not be possible if you need the computer immediately but it will depend how urgent the purchase is. It will be cheaper than borrowing and so this could be a big advantage, but of course, it will take time to get the money. You will not be able to buy the computer immediately. Whether you can wait to buy it or not could determine whether this will be a good option for you or not.