An easy payment plan (EPP) or also known as a flexi payment plan (FPP) is a credit card instalment plan that allows you to convert your purchase(s) into smaller instalment payment for a fixed period of time.
Normally, when you swipe your credit card on a retail transaction, you have a 20-day interest-free period after the statement is issued to settle the payment in full amount.
After reaching the statement due date you still haven’t made a full payment yet, the bank can slap you with a finance charge of between 15%-18% p.a. on the outstanding balance.
This interest will compound every month until you have cleared up the outstanding balance, which could take months or years. Worst comes to the worst, your credit score will not be impressive too.
Nowadays, most credit cards are equipped with a 0% easy payment plan to make purchases more convenient and affordable for you, regardless of your income groups.
Are you not familiar with a credit card instalment plan? Continue reading.