271–276 of 276 posts
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Yeah there's also non-credit card that has the same fraud protection, contactless, separated balance, plus mobile app that's very fancy that can even pay street food shop.
Its fucking amazing how backwards the US financial ecosystem is, and I don't really understand why.
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> But buying a phone or computer in installments? How does that make sense? > You can't afford it, end of story. I'm not saying you are privileged, but I generally only hear this argument from people who have never been poor, or people in countries with functional social safety nets. Having no computer, phone, car, or washing machine (or an extremely old one) can cost more money and time in the long run due to Capt.…
I agree with all you say, but I don't see the connection between paying front up or in installments. A decent laptop can be bought on craiglist or similar websites for 150/200$, and you can get a decent mid tier laptop from few years ago, a smartphone would be half of that. Thus, where's the jump to buying a brand new computer in installments?
Paying up front typically means deferring the purchase until you can afford the full cost. If it takes you a year to save up for the car/laptop/washing machine then that means a year of dealing with the more expensive alternatives. In many cases those costs exceed a the interest on the loan, making it a financially sound decision to purchase the item in installments.
> A decent laptop can be bought on craiglist or similar websites for 150/200$
In my experience a craigslist computer is a crap shoot that is an irresponsible purchase unless you are experienced at repairing computers and keeping them going past end-of-life. The risk is just too great that it will not function or meet your needs which is not something you can afford. I'm not saying everyone needs the latest top-of-the-line MacBook, but the vast majority of people are better off buying refurbished and/or mid-level models that are not more than a few years old instead of a $150 craigslist special.
Ditto with cars. Unless you know what you're doing, trying to depend on the absolute cheapest car from craigslist will end up being far more expensive in terms of time and money than just getting a decent used car in the first place.
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Sometimew people really don't have a choice. I personally hate debt and when possible I pay everything with cash up front. My wife got pregnant, and our spending, specially on health was already sky high, so I did 5 months of overtime chasing a promised raise and possible promotion. Then I got fired. My last day of work was mid December. Child will be born soon. (Maybe even today, we are hoping for natural birth). Th…
So you can barely afford your own needs and have no savings, but you decide to have a child?.. No offense, I'm just curious about your thinking and priorities.
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The amount of what you owe is fixed at the time of a 0% interest BNPL purchase, just like a real purchase. Even if the interest rate is not 0, it’s still fixed. It’s not a margin account where you have to call it if the value dips too low over time. What in such simple concept is so hard for you to understand?
BNPL suggests that it's better to take the 0 percent and pay off the 800 bucks, say, 2 years later and park the money somewhere accrueing interest. All I'm saying is if you're getting a 0 percent loan for the mixer, interest rates on your savings are not going to be great either and returns on index funds are not going to consistently go up either. It's not unlikely that you end up with your 800 bucks turning to 750…
Honestly, if in 2 years you still haven't managed to save > $800 worth of your time with the stand mixer, you probably shouldn't focus on that $50 of depreciation.
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I agree that it's stupid to finance everything. However some big things make sense to finance. Take your car example: I'm not rich enough to buy a car that won't break down every year (I know, I tried). However, when my car breaks down, I can't go to my clients and I lose money. In this case, it makes sense to rent out a car that's going to be working properly, and with guarantees in case it doesn't. However yes, I w…
The issue is that financing changes what is available in the marketplace for you to buy. There are cheap new cars that don't break down every year (ex. toyota hilux) that are not sold in the US. Because it's more profitable to finance you a 50k truck than a 20k truck. The housing market works the same. If we didn't standardize fixed rate mortgages houses would be cheaper smaller and more available.
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BNPL suggests that it's better to take the 0 percent and pay off the 800 bucks, say, 2 years later and park the money somewhere accrueing interest. All I'm saying is if you're getting a 0 percent loan for the mixer, interest rates on your savings are not going to be great either and returns on index funds are not going to consistently go up either. It's not unlikely that you end up with your 800 bucks turning to 750…
> 800 you put in at the beginning, 50 you have to chip in at the end, you just paid 850 for that mixer. Honestly, if in 2 years you still haven't managed to save > $800 worth of your time with the stand mixer, you probably shouldn't focus on that $50 of depreciation.