Interest on splitting a payment for Rakuten CC

[TokyoBoglehead]

Yeah 2 instalments is free on Rakuten credit card HOWEVER many online shops/services don’t give you the option of 2 instalments, only from 3. Including Rakuten ichiba which is annoying.

Can't you always change to 2 installments later in the card website? I never did it before, but I always see the advertisement about it.

No, only 3 or more times.

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[KCLenny]

Yeah, the 2 time payment option is incredibly limited. I guess to get people to go for 3 or more so they can make some money.

But yeah, my income has increased over the last few months. But some surprise outgoings, some unavoidable outgoings, and higher bills and welfare bills etc haven’t left me with loads of money after.
So this question was just to make sure I understood how to calculate the interest on multiple instalments so I’m not paying ridiculous amounts to split the payments on a few big necessities that may be coming up.
I bought an AC last month and split it in 2. But still haven’t even had that installed yet as the company has been messing me around. So just thinking ahead for some other necessities, bigger newer fridge, potentially another AC or at least a dehumidifier for a room where AC would be difficult, potentially new washing machine. Those kinds of things.

[CarlB]

I bought an AC last month and split it in 2. But still haven’t even had that installed yet as the company has been messing me around. So just thinking ahead for some other necessities, bigger newer fridge, potentially another AC or at least a dehumidifier for a room where AC would be difficult, potentially new washing machine. Those kinds of things.

Just a couple of observations. I'm an owner occupier so I haven't rented in a while so I apologize if what I say is not correct.

Anyway, it seems that you have recently moved into your apartment. If you consider aircons as necessary, why wouldn't you move into a place with aircons already installed? If you ever moved again it wouldn't be cost effective to uninstall the aircons and then install them in another apartment.

Also, as this website is focused on 'good money management', I'll address the elephant in the room. In your initial post you mentioned putting an e-bike on your credit card along with the aircon. Both these items I would consider 'luxuries'. What is your rationale putting them on a credit card and paying the subsequent interest payments? You even state the aircon has been sitting around in a box while you are waiting for it to get installed. It seems the summer heat will have gone by the time the aircon is actually installed.

These are just my observations I hope I'm not out of place making them.

[KCLenny]

All of those are reasonable comments but all have decent explanations

I wanted to move into a bigger apartment but was also looking at reducing my monthly rent. I found the perfect place regarding those. It was 10sqm bigger and 30,000 yen cheaper than my old place. The one downside was no AC. That was ok when we initially moved (January), as we already had our own AC from the old place which we brought with us. As it got hotter and hotter, we realised we’d need another one. We knew it was always likely but we’d survived in Japan before with only a bedroom AC so thought it was doable again, especially as the living room was north facing. Obviously we were wrong. We ordered a second hand AC at the end of June. The reason it’s been sitting around since then is because the installation company has been royally screwing us over. Trust me, I wanted it installed the second it arrived. But the guy came in and just instantly started saying a load of reasons why he wasn’t going to do it that day. Since then we’ve contacted them multiple times, been waiting around for the housing company to liaise with the construction company etc. so yeah, that’s all been out of my hands unfortunately.
And lastly, yes I know an ebike is a luxury. I cycle to work every day, it’s 5km there. I appreciate that doesn’t sound very far or difficult, but I also have chronic fatigue. The train station actually makes it a longer more uncomfortable commute due to station locations. Cycling is way more direct and fast and cheaper in the long run. I have always cycled and I have motion sickness on trains and busses. And although it is an ebike, I guess technically it’s a pedal assist, meaning I still have to actually pedal for it to work, also meaning I am at least somewhat getting some exercise from it, which I don’t otherwise have time for. At least this way I’m minorly exercise and going to work at the same time.
As for putting both the ac and the bike on the credit card, I put everything on my card, but these are the only things I have split payment. The bike I split into 5, so paid a few thousand yen extra on it. And the ac I split into 2, so no interest. Just for conveniences sake of not having the lump sum come out of my account in one hit.
I hope that clears it up.

[TokyoBoglehead]

All of those are reasonable comments but all have decent explanations

I wanted to move into a bigger apartment but was also looking at reducing my monthly rent. I found the perfect place regarding those. It was 10sqm bigger and 30,000 yen cheaper than my old place. The one downside was no AC. That was ok when we initially moved (January), as we already had our own AC from the old place which we brought with us. As it got hotter and hotter, we realised we’d need another one. We knew it was always likely but we’d survived in Japan before with only a bedroom AC so thought it was doable again, especially as the living room was north facing. Obviously we were wrong. We ordered a second hand AC at the end of June. The reason it’s been sitting around since then is because the installation company has been royally screwing us over. Trust me, I wanted it installed the second it arrived. But the guy came in and just instantly started saying a load of reasons why he wasn’t going to do it that day. Since then we’ve contacted them multiple times, been waiting around for the housing company to liaise with the construction company etc. so yeah, that’s all been out of my hands unfortunately.
And lastly, yes I know an ebike is a luxury. I cycle to work every day, it’s 5km there. I appreciate that doesn’t sound very far or difficult, but I also have chronic fatigue. The train station actually makes it a longer more uncomfortable commute due to station locations. Cycling is way more direct and fast and cheaper in the long run. I have always cycled and I have motion sickness on trains and busses. And although it is an ebike, I guess technically it’s a pedal assist, meaning I still have to actually pedal for it to work, also meaning I am at least somewhat getting some exercise from it, which I don’t otherwise have time for. At least this way I’m minorly exercise and going to work at the same time.
As for putting both the ac and the bike on the credit card, I put everything on my card, but these are the only things I have split payment. The bike I split into 5, so paid a few thousand yen extra on it. And the ac I split into 2, so no interest. Just for conveniences sake of not having the lump sum come out of my account in one hit.
I hope that clears it up.

I do not think splitting payments is so bad, you can calculate the extra cost upfront. It is nowhere as bad a revolving payments. Bikes can be expensive for taller people in Japan. At my height I have few option in Japan, and settle for paying 7ー8man for an imported Trek.

It could also make sense for someone to pay a few 1000yen to avoid touching a cash emergency fund, fearing that they may need the liquidity.

However, I personally take exception to an AC being qualified as luxury though.

[RetireJapan]

However, I personally take exception to an AC being qualified as luxury though.

It used to be that people on welfare (生活保護) were not allowed to have air conditioners, but they are very much necessary now that the climate has changed. I'm thinking within the next few years we'll need to get a home battery just to make sure we don't lose power in the summer (which could be dangerous/fatal).

[KCLenny]

However, I personally take exception to an AC being qualified as luxury though.

It used to be that people on welfare (生活保護) were not allowed to have air conditioners, but they are very much necessary now that the climate has changed. I'm thinking within the next few years we'll need to get a home battery just to make sure we don't lose power in the summer (which could be dangerous/fatal).

This is definitely something I think about. And if I had the spare cash I’d be investing in a decent battery and a decent balcony solar panel.

But yeah, AC is NOT a luxury, I’m suffering near heat exhaustion with only 1 AC in my bedroom over night. The second I leave the room it’s like hell.

[CarlB]

However, I personally take exception to an AC being qualified as luxury though.

And for some people the latest iPhone is a necessity and not a 'luxury'. These things are relative. The OP doesn't have any spare cash. If he had a sudden family emergency and needed to go back to the UK with his wife, he would need to shell out 600,000 yen plus just for flight tickets. He needs to be financially prepared for those kinds of eventualities.

An aircon is a 'luxury' in the sense an electric fan would serve as a much cheaper and adequate alternative to an aircon. There is no way that I would pay 100,000 yen plus for an aircon if I didn't have the money to pay for it. It seems likely by the time the Op's aircon is installed; it will be noticeably cooler, and he won't even use the thing.

[KCLenny]

It’s being installed tomorrow, and I bought it second hand so all in was only 50,000. I live on the top floor of a danchi. A pathetic electric fan will do nothing but blow the dust off my melting corpse.
As for emergencies. Yes I should plan for those, but first I need to make sure I don’t die of heatstroke and that I am healthy enough to act in an emergency. And that involves having an AC. It is NOT a luxury. We are in Japans biggest heatwave ever.

[CarlB]

It’s being installed tomorrow, and I bought it second hand so all in was only 50,000.

I hope you have a decent guarantee on that. Secondhand electricals can turn out to be duds as you don't know what you are buying particularly if you are a foreigner with limited Japanese ability. For future reference, if they won't give you a five-year guarantee walk away.

I knew of a foreign guy who used to offload all kinds of crap he got from the garbage stations to fresh off the boat arrivals.