You may have noticed that we don’t offer installment payments for our courses at LEAD. In a world where installments and ‘Buy Now, Pay Later’ (BNPL) plans are so synonymous – I want to explain why we are not adopting them at LEAD.
Students learn better, when ready
And by ready, I mean ready physically, mentally, and emotionally.
The success of any course comes down to two things;
- What the student learns.
- How the student feels. (Energy & attention.)
That is, in order to learn effectively, you need focused attention. We cannot understand, learn or remember that which we do not first attend to. It’s like learning to drive a car. You first time you drove a car, you had to put 100% attention.
We found students who requested to pay in installments – often distracted. Maybe it’s the worry due to financial constrain or the hassle of having to bother with installment payments, in the midst of a course.
This distraction, seemingly small – causes a huge downside in their learning experience. Without full attention to learning, their learning isn’t effective. They won’t be able to get the most out of the programs we run at LEAD.
That’s why we insist on collecting upfront payments. Get registration and fees settled early. Put full attention to learning.
Will this change in the future?
Sure, we have customers asking us to consider installment plans. Yes, I hear you.
We don’t know in the future. However, at this time, no.
We designed our programs to be accessible for our audience. The fees are more affordable than a typical college or university, yet they offer a learning experience and networking opportunity not found anywhere else.
What if I’m not ready?
Other reasons to avoid installment or BNPL plans
1 – It’s easy to overspend
BNPL plans break down the cost of a good/service into a few payments. This can give the illusion of something being more “affordable” than it actually is, thus leading people to spend more than their means.
BNPL plans are also more accessible, compared to signing up for a credit card or loan. The ease of access leads people to sometimes make impulsive purchases on things they don’t actually need – thus digging a bigger financial hole for themselves.
2 – You can get hit by late fees
Managed correctly, installment and BNPL plans can help with cash flow. However, fall behind your payment schedule and you’ll be hit by expensive late fees.
3 – Your CTOS (credit rating) score might take a hit
Installment and BNPL plans don’t require you to have a good CTOS score to qualify. Shop on E-commerce sites like Lazada, and you’ll see that there’s no inquiry on your credit report needed. The option to pay via installment is just there, at the checkout!
However, the same as most loan payments – if you fall behind your payment schedule, your CTOS credit score might take a hit.
A good credit score ensures you are eligible to apply for bank loans and enjoy a low-interest rate.