The customer ends up paying a high price than he would have paid if he was to pay in cash.
It may tempt buyers to purchase more goods on credit than they could actually pay for. This may result into losses if they fail to complete all the installments.
It may worsen the relationship between the customer and the seller in case the customer is taken to court for failing to complete all the installments.
It is costly to the customer since he has to visit the seller many times until the final installment is paid.
The payment of regular payments over burdens the customers.
The buyer under this system may not be in good position to bargain hence ends up being over charged