Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Latest trap? IMHO buy-now-pay-later has always been risky for those teetering on the financial edge. My rule of thumb has always been if I can't afford to pay some purchase off at any near future moment, I have no business buying it in the first place.
Last edited by Parnassia; 02-16-2024 at 03:35 PM..
Great gravy… that is nothing new! Must be a slow blog day.
Or else a new generation is just finding this out.
I once had to live in the land of financial embarassment because I was married to a person with bad habits. I borrowed from Peter to pay Paul, carried high-interest balances, kited checks to make ends meet, set up payment plans with the IRS, even went to landlord-tenant court to work out a deal so that I wouldn't get evicted. I got rid of the main financial problem by getting a divorce, but it took me years to recover. Now I pay off credit cards in full each month and my mortgage is my only debt.
However, this week I've spent a lot of money as I am trying to furnish an apartment, a second residence, as cheaply as possible, but I still spent more than I intended. I woke up this morning in panic about it until I calmed myself down by reminding myself that I will be able to pay for all of it when the bills come.
I never want to be in that position again where debt overwhelms me.
At least then they don't get to use/have/possess/own the item until they've paid for it. But that doesn't really exist anymore.
Buy now pay later IS being used to entrap younger generations.
They don't think of it as an equivalent to CC usage, though CC usage is really the same.
The only type of this is maybe an auto repair or furniture credit that has a "if paid in 6 mos no interest applied". That would benefit younger crowd not yet with big finances to cover what could be a major purchase IF and ONLY IF they know they CAN pay it off within that 6 mos.
BUT, this to, can be a snare if it's even one day late, or if they can't actually pay it off within less than six most, then the accrued interest and further interest is due until total payoff is executed.
Latest trap? IMHO buy-now-pay-later has always been risky for those teetering on the financial edge. My rule of thumb has always been if I can't afford to pay some purchase off at any near future moment, I have no business buying it in the first place.
My Wife and I have used the "Buy now, pay later" deals several times before and have had no issues. Usually, it's Lowes; we purchase a product, service, sometimes both, and have to pay the amount in full by X date. So long as you know what the X date is and pay off the amount by that date. You are good. Yes, if we paid cash, we could have gotten a slightly better deal; Lowes usually offers a 5% discount for paying in full. We have never paid interest on what we purchased. We had a fence and new exterior doors installed for 16k two years ago; the promotion was 24 months with 0% interest. The promotion expires on 07/31/2024 and the deferring interest is about $4,500 at this time, but we will pay it off well before the due date.
My Wife and I have used the "Buy now, pay later" deals several times before and have had no issues. Usually, it's Lowes; we purchase a product, service, sometimes both, and have to pay the amount in full by X date. So long as you know what the X date is and pay off the amount by that date. You are good. Yes, if we paid cash, we could have gotten a slightly better deal; Lowes usually offers a 5% discount for paying in full. We have never paid interest on what we purchased. We had a fence and new exterior doors installed for 16k two years ago; the promotion was 24 months with 0% interest. The promotion expires on 07/31/2024 and the deferring interest is about $4,500 at this time, but we will pay it off well before the due date.
The difference between getting sucked into the debt mire and doing something you described is steady predictable income, a good understanding and control of your ongoing expenditures, the ability to plan ahead, understanding the risk of the unknown (an unexpected big expense rearing its ugly head during the payoff period), and probably some resources behind you that you could bring to bear to pay things off in a pinch. I've done something similar a few times, usually for relatively minor purchases. I would never pay interest toward a purchase I could pay off in full. That's just stupid!
OP you sound like a very out of touch person complaining about this.
Back in the day this was called "layaway" & no one judged because everyone's mom sometimes had to "borrow out of the piggybank" so the kids could have a nice Christmas.
OP you sound like a very out of touch person complaining about this.
Back in the day this was called "layaway" & no one judged because everyone's mom sometimes had to "borrow out of the piggybank" so the kids could have a nice Christmas.
Some things are worth putting on credit.
Not so, layaways have no interest charges, but CCs do.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
