If you have just made aliyah, one question will follow you almost everywhere you shop: "How many payments?". Cashiers will ask you this at electronics stores, furniture shops and even at medical clinics. The Hebrew word is “Tashlumim,” and it refers to paying in installments. This is how many Israelis pay by default.
“In many ways, Israel is already at the next stage of what the world is now calling ‘buy now, pay later,’” says Maya Ravia Spivakovsky, VP Head of strategy at Bank Leumi. “What is only starting to be popular abroad has been built into the Israeli consumer culture for years.”
Understanding how it works, and when to use it, is essential for navigating daily life and avoiding costly mistakes.
How the credit system actually works
Let's say you want to buy a new refrigerator that costs NIS 6,000. Instead of paying the whole sum at the cash register, you might be offered to split the cost into several monthly charges on your credit card. These can range from a few charges (3-4) to many charges (10-12), depending on the store and the cost. Most of the monthly charges are interest-free, meaning the total price of the product doesn't change. Upon payment, the cashier will ask you if you wish to pay in installments and if the payments include interest, it will be indicated at the time of payment.
Behind this sits a system that works differently from what many immigrants know. “In Israel, credit cards operate on a deferred debit model,” Ravia Spivakovsky says. “Purchases (within your credit line) are automatically pushed to a fixed billing date and deducted from your bank account.” In practice, this means you are not charged immediately when you buy something. Instead, purchases are grouped together and charged on a set date each month, often the 1st, 10th or 15th, depending on the customer's choice. Installments follow that same cycle, creating a built-in delay between the purchase date and the actual payment.
Thinking in terms of future income
Paying in installments is very common in Israel due to a combination of economic reality and consumer habits. This is not just a payment method in Israel. This reflects a different way of thinking about your money. “Most Israeli consumers spend money based on the salary they expect to receive, not the salary they have already received,” says Ravia Spivakovsky. Instead of asking whether they can afford to buy something that costs 3,600 NIS, many shoppers ask whether they can afford to pay 300 NIS a month (in 12 installments). That shift lowers the barrier to spending and helps explain why installment payments are so widely used. The country’s high cost of living also reinforces this behavior. Splitting payments makes large expenses such as appliances, furniture and medical care feel manageable, while retailers actively promote installment plans as part of the sale.
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'Splitting payments makes these purchases feel more manageable'
(Photo: AP Photo/Gene J. Puskar)
Why it doesn’t feel like debt
For many Israelis, installments don't feel like they are borrowing. “The Israeli public doesn't necessarily perceive installment payments as debt,” Ravia Spivakovsky says. “It feels more like payment terms.” Because monthly payments are deducted automatically and often come without interest, they can feel like a simple delay rather than a financial obligation. But this perception needs to be managed. Spreading payments across many months could make it harder to track how much you actually owe, especially when multiple purchases overlap.
When installments can help
Used carefully, “Tashlumim” can be a useful financial tool. If your income is steady but your cash flow is tight, interest-free installments allow you to spread costs without paying more overall. This can be particularly helpful for essential purchases that cannot be delayed, such as replacing a broken appliance or covering renovations or medical expenses. “I would recommend using installments for peak expenses, not for routine spending,” says Ravia Spivakovsky. In some cases, spreading payments can even help manage short-term financial pressure without resorting to more expensive forms of borrowing.
What to look out for?
There are some risks that could arise from using installments too often or without keeping track. Splitting several large purchases into smaller monthly payments can create bigger credit card charges at the end of the month , putting pressure on your monthly budget. “If you split every supermarket purchase into installments, you haven’t improved your cash flow,” Ravia Spivakovsky says. It is also important to check whether a purchase is truly interest-free.
Another factor to consider is your credit limit. Each installment reduces the available balance on your card, even if the full amount is not charged at once. Heavy use of installments can therefore restrict your ability to make other purchases or lead to declined transactions. For new immigrants still adjusting to the local payments system, this can come as an unwelcome surprise.
A system you need to manage
What makes “Tashlumim” particularly important to understand is that it reflects a different way of thinking about money. In Israel, prices are often framed as monthly commitments rather than total sums. This framing shapes consumer behavior and can make spending feel easier than it actually is.
Installments offer flexibility and can help manage large expenses, but they also make it easier to lose sight of your total obligations.
For new immigrants, the question you will hear is "How many payments?". The more important question you should be asking yourself, is how much you are truly committing to pay every month and whether the purchase still makes sense if it's paid upfront.
In cooperation with Bank Leumi; the provision of the services described is subject to the Bank’s terms and conditions; failure to meet loan or credit repayment obligations may result in the accrual of default interest and the initiation of enforcement proceedings.
Services are given only in Israel.