While crossing the street, I saw many smartphone-related shops across the street. And smartphones were available on EMI, which attracted people to the stores. There was a long line of people standing outside the shops.
Today we are going to talk about whether buying smartphones on EMI is right or wrong’. Why should we purchase smartphones on EMI, and why not? What are the merits and demerits of EMI?
Merits & Demerits:
First and foremost, buying anything on EMI means buying things on loan. A loan or debt is not always a good thing to follow. The loan can only be beneficial for those who get benefits out of it, i.e., if someone invests 10 rupees and gains a profit of 50 rupees out of it. But taking out a loan on things that depreciate is a big decision to make and can also be a mistake. Depreciation means when the value of a thing goes down or reduces according to time. For example, when you buy a smartphone worth ten thousand or 1 lakh, the value of the same smartphone won’t remain the same throughout life. At some point, the value will change according to the requirements. The value may reduce to a very low amount of passing time.
That means when you buy an expensive smartphone on EMI, let’s say it is worth 50000 & 60000rs, the value of the smartphone won’t increase but decrease over time. When you buy smartphones worth 50000 their value may even decrease to 10000 or less.
When you buy something on EMI, you don’t have to pay the full amount at the exact time but have to pay the lesser amount at the start and pay with interest for the given period. Like when you buy a smartphone worth 60000, that means you are not paying just 60000 but more amount with interest that can be 65000 or even 70000. This means you are paying extra charges for something worth 60000. It does not sound like a good thing to pay extra charges for something that you can pay less for.
Some people think that once we buy a smartphone on EMI, the work is done. They think not paying the EMI won’t affect anything. Which is completely wrong. But when you have to buy a smartphone on EMI, the financier or the handset puts a code inside the phone, through which, when you don’t pay your EMI bills, the smartphone will automatically be locked. You can only pay your EMI through your UPI, bank account or any online medium, only then your smartphone will be unlocked and work. Otherwise, it will stay locked until the EMI is paid. This means there are restrictions set on smartphones bought on EMI which can’t be broken easily.
Whenever you buy something on EMI, you spend more than what’s needed. Which affects being trapped in a credit card trap and many more such things. People think that it’s easy to pay later and buy things first. Which results in people buying many expensive things and not being being able to pay the EMI bills in the given time.
You may have seen people earning 20000–22000 per month and owning a smartphone worth 1 lakh. How do you think they own such an expensive smartphone with such low earnings?
These people buy smartphones on EMI and pay extra, or even double, every month. Even though their smartphones get old, they are still paying the bills.
For example, you may have seen lots of people owning iPhones in this generation. It’s like everyone dreams of owning an iPhone, even if they earn less. And there are even people who don’t require such expensive smartphones. They don’t use these expensive phones for professional use or to make videos. It’s just a dream to have an iPhone in their hand and use it only for calling or texting.
If one buys an iPhone with low earnings, that means he or she will pay EMI bills for 2-3 years or even more. So till the time they pay their EMI bills, the market will introduce a new version that is more fulfilling and expensive.
The iPhone or Samsung Galaxy series is made for someone who earns 3–4 lakh per month. People with high earnings can afford to keep expensive smartphones with them. But people with low incomes should keep smartphones worth 10000-11000. And an expensive smartphone only if required. Owning an expensive smartphone with no use is a waste of money. Or you’ll drown in the debt.
Buying second-hand smartphones.
