Something New About Credit Card Instalment

I learnt something new about the credit card interest-free instalment. We all know that banks nowadays dangle the carrot of interest free instalment to encourage people to use the card, but do u know that the whole instalment amount actually eats into the credit limit of the card for the whole instalment period?

I was quite surprised as I thought that it is only the monthly instalment that eats into the credit limit. Dad was nearly jumping up & down when I told him that my friend had used my card to purchase his laptop. Luckily, my dad cooled down after a while, after I said that this friend of mine was paying me regular instalments. Even though dad must be thinking in his heart that this guy clear off the instalments when he has spare cash.

I guess sometimes it does not help to be nice, as this friend of mine wanted to buy something using credit card instalment. He wanted to use my card, but it didn't go through.I was telling this friend of mine that the thing that he wished to purchase this round was a luxury item, something that I would not buy if I were him, as I am not part of the rich & famous or who's who in the society. There is no point walking around in such a item on hand. You will attract unwanted attention.

I knew he was angry when I said this, but I do not wish to see this friend of mine fall into the trap of having luxurious items, without knowing if it is a need or a want.

Hope he can do some serious thinking about what I said.