Avbetaling

Avbetaling, or installment payment, is a method of paying for goods or services where the buyer makes a down payment and agrees to pay the remaining balance in a series of installments over time. The arrangement may involve a loan from a bank, a retailer, or another lender, sometimes with interest or fees.

A typical avbetalingsavtale specifies the total price, the amount paid upfront, the number and size of installments, the interest rate, and the due dates. It also sets requirements for late payments, penalties, and procedures for early repayment or refinancing.

Common contexts include consumer electronics, furniture, and vehicles, as well as store financing offers. Avbetaling can make purchases more affordable in the short term, but the overall cost may be higher than paying the full amount upfront.

Advantages include improved cash flow and the ability to budget; drawbacks include higher total cost due to interest, potential debt accumulation, and the risk of penalties if payments are missed. Responsible use requires comparing total costs and terms across lenders.

Regulatory frameworks in Norway and many EU/EEA countries require clear information on the total price, annual percentage rate (APR), and consumer rights, including withdrawal options and dispute resolution. Consumers should read the contract carefully and ensure terms are understood before signing.