In general, I don't pay for big ticket items like furniture or cars in cash, with some exceptions, obviously.

Almost always, I don't finance unless there is zero percent interest and I can pay the item off before the zero interest expiration date.

Por ejemplo:

ROOMS TO GO!! They have 0% for 70 years, practically. I bought $1000 couch, and while I could have paid cash, I thought "Why give up that cash when I can pay $16/month for 47 years" without penalty.

Am I lolstupid?

The second question - the balance is at $247. I've been making $50 payments instead of the $16 required. Would you just pay that off or would you keep nickle and diming it just because you can?

I'm old fashioned. I loathe buying something on credit if I can pay cash.

Its not always the best thing, because like you said, you can have money in an interest bearing account while paying off a zero interest loan......but still.

I think it depends what you are doing with the cash you would have bought the furniture with. If it is just sitting in a bank account, then you might as well just put it all down because it isnt doing you any good anyways

Ever tried negotiating with cash? It may not work at a place like Rooms To Go, but it works at most places.

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Ever tried negotiating with cash? It may not work at a place like Rooms To Go, but it works at most places.

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You know .... I never have! Only with the car we just bought.

I would like to sit down with a financial advisor. I have these ideas about how to handle our finances, but based on some of the comments I've made and the GB response, I think have a lot to learn. I'm freaking 32 years old and I feel like I missed the boat.

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I think it depends what you are doing with the cash you would have bought the furniture with. If it is just sitting in a bank account, then you might as well just put it all down because it isnt doing you any good anyways

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That is correct. Then again, f it. Interest free is interest free. If you don't mind the hassle of having to remember to make monthly payments, why not?

Because most places are marking up the item to allow for 0% interest to be profitable…. Negotiate up-front price, pay cash, and move on with your life. But if you prefer to have 4 a year old living room set that you still don’t technically own, more power to you.

I don't like making monthly payments because it ties up my cash flow. If I'm making 10 payments of $100 a piece each month that's $1000 that I can't put towards something else. If I have the money I'll typically pay it off within 3-4 months of buying it.

Let's remember what's important Jill: my 2 TVs >>>>> your TV

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I don't like making monthly payments because it ties up my cash flow. If I'm making 10 payments of $100 a piece each month that's $1000 that I can't put towards something else. If I have the money I'll typically pay it off within 3-4 months of buying it.

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[This message has been edited by terradactylexpress (edited 7/11/2012 9:20a).]

[This message has been edited by terradactylexpress (edited 7/11/2012 9:20a).]

Let's remember that Jill has 2 TVs as well.

LOL!! That right there, kids. That's why I want your suggestions.

TE - why do you feel like what she said was not the best choice.

EXPOUND, BIT(HES!!

I have been bested by a ginger. Looks like Fred needs to go shopping.

I know. It's weird and probably completely ass-backwards. But this thought process typically keeps me from buying things that I don't really need. Otherwise I probably would've already bought another TV, new couches, a new bed, etc. All things I can afford I just don't need.

However I do need eye surgery so that will be paid off with 0% interest.

we are talking about $25 or so in interest a year - who gives a ****

Chickenlady if you can't figure out why paying a 0% loan off early is retarded I can't help you

texags really needs a lolpoors forum


maybe forum_id=broke

it smells like poor in here

If the interest rate is below the rate of inflation, there is no point to an early payoff, unless you just don't want debt on the books.

Personally, I don't keep any debt below $500. On things I finance (i.e. student loans, car, etc.), once the balance hits $500, I pay it off just to get rid of it.

Dino can't resist these kinds of threads

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but based on some of the comments I've made and the GB response, I think have a lot to learn.

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Start by not believing 90% of those responses. You need to realize that most on this board are full of s***.

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Dino can't resist these kinds of threads

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They make my head hurt

Time value of money lessons needed.

TE - you're not offering a lot of input, just opinions.

If they make your head hurt, why don't you drop some knowledge on my poor retarded ass.

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Because most places are marking up the item to allow for 0% interest to be profitable

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Actually, with consumer goods, not really. The real money maker is in the default provisions. E.g. if you fail to pay off the 0% note by a certain date, the rate moves from 0% to LIBOR+15% or something crazy. Not as many people as you think are good at sequestering funds to pay a 0% note thus they get hammered at the back end with jacked up interest.

I'm not offering opinions

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Chickenlady if you can't figure out why paying a 0% loan off early is retarded I can't help you

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Translation: I don't want to help.

Put your head in your hands all you want, if you aren't suggesting solutions, you're just a bystander throwing out an opinion.

I dont know this for a fact, but Im almost certain none of that debt is held by the retailer. Im sure rooms to go sells the debt to "xxx finance company" for 97 cents on the dollar or whatever the going rate is.

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Translation: I don't want to help.

Put your head in your hands all you want, if you aren't suggesting solutions, you're just a bystander throwing out an opinion.

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Translation: I'm not your ****ing parents and need to hold your hand through being an adult.

My parents died when I was 5. I was raised by my grandparents that didn't have two nickles to rub together while they were raising their 7 children.

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Im sure rooms to go sells the debt to "xxx finance company" for 97 cents on the dollar or whatever the going rate is.

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Rooms To Go enters into a contract with a credit card issuer to provide store credit to customers. RTG gets paid within 48 hours, and the credit card company holds on waiting for you the customer to miss a payment. When that happens interest is accrued retroactively, and the finance company makes money.

This seems like one of those questions that 30 years ago you never would have believed a college graduate would be asking.

LOLpoors

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My parents died when I was 5. I was raised by my grandparents that didn't have two nickles to rub together while they were raising their 7 children.

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Right turn Clyde