Loan Sharks

[Nyboy]

I was told my 7 year old flat screen rarely used TV was obsolete. I could not hook it up to cables WIFI. I decide to treat myself and get a really good do everything TV. I went online and in less then 5 minutes was approved for a Best Buy store credit card then at the end I was told intrest rate 25% That is highway robbery!!no way will I use their card. I am sure people get desperate and use store credit to buy things they think they need.

 

[PennyJo]

yes I agree they are and that is with most the store card are

 

[bobm]

We have a 10+ year old TV ( not flat screen) in our master bedroom that works just great. So I have NO NEED for any overblown store credit card.

 

[Larisa]

I'd rather starve than take credit. Of course, I understand that there are special cases when people do that. For example, my friend's husband bought a truck on credit, and immediately began to earn money by working on the truck. But there are people who take credit for different stupidity. Some people could not even correctly calculate the credit they return or percent. Percent is very high. As a result, you pay 2 or 3 prices. Some people take new loans to pay to the old. Troubles are growing like a snowball rolls down the mountain.

 

[Smart Red]

Often Best Buy will offer programs such as 12 month same as cash with their cards. The interest rate may be 25%, but I've never gone over the 12 months so I used their money for most of a year for free. That's how I purchased the entertainment equipment for the basement -- free money.

The few credit cards I do use/have are ALWAYS paid in full each month so I never have any interest charges on them.

Here in America, credit can easily be misused but it can also be used wisely. My new tractor is interest free for 60 months. As I will have it paid in full before the interest charges accrue it won't cost me more than the selling price and I didn't have to wait until the funds were saved up to get and use the tractor.

I suppose it would be easy for some to get into financial trouble that way, but I could pay it off in full at any time so I'm not worried about having problems using credit this way. Bank interest isn't much, but I am actually earning a bit at the same time as the loan.

 

[so lucky]

Larisa, In Russia do people not buy their cars, houses and large appliances in installment payments? It would be best to save up for these things and pay in full at purchase, but most people here are too impatient to wait. (The neighbors all have it, I need it too)
We are such a "I deserve it" bunch of consumers. Some people even rent their furniture and appliances, paying $25 a week for each thing. That eats up a paycheck in a hurry, and they don't even own it.

 

[seedcorn]

Credit card debt in USA is out of control. People want what they want, and only look at monthly payments.

@Smart Red no such thing as 0% interest. They bury it in price. Usually their rebate (or cash discount or whatever term they use) is the same as what money costs them.

 

[Chickie'sMomaInNH]

the only reason i keep a Best Buy card is when i have to replace something expensive like the washer/dryer/dishwasher/fridge. the last thing i got was my laptop which just got paid off last month. at the time i got it they were doing the 12 month free financing. as long a i get something that falls under their 6/12/18 month 0% financing that is the only way i will use their card. i get it paid off before the end of the time period.

 

[aftermidnight]

@Chickie'sMomaInNH , our daughter does the same but with her Home Depot card.

We only have one credit card, use it when buying most things except groceries I use cash for that. No matter how big the amount is it's paid off in full each month, so no interest. We get a rebate on our card once a year, usually enough to pay for two or three dinners out .

I run our household on a budget and we stick to it. We save up in advance for things we know we'll need in the future, even Percy our kitty has money in the bank, in fact at the moment she's got more money than me .

It's so easy to do once you make out a budget and then stick to it. House taxes, House Insurance, Car Insurance, Oil deliveries, Christmas shopping, Utility bills, Medical insurance, etc. and of course a little spending money(gotta have a little of that). I even put a bit away each month to go towards the next range, fridge, washer dryer that might go belly up. We have a set amount we spend on groceries each week, if for some reason I'm running short it's kraft dinner or a can of pork and beans. We have dinner out every Friday night, usually take out on Saturday night(hubby's night to cook), I take these two night off, Sunday I'm back chained to the stove.

I run our budget on a 10 month year, divide up everything I think we will have to pay out in the year and divide by ten, this is the amount that has to be banked, July and August I don't budget that money, it can be used or not used, a new computer, new tires or lots of dinners out . We also have money from RIF's coming in every month but it's banked and only used for a new roof or a new furnace if needed, some big expenditure.

I was a little nervous when hubby took early retirement, wondering if we would have enough to live on but was pleasantly surprised to find we had more disposable income than we did when he was working. Even on a fixed income, you'd be surprised how much you end up saving sticking to a budget, of course we don't have house payments or car payments anymore but we did at one time.

Credit card debt is the biggest problem, this is what's killing everybody, you have to cut it up and pay it off. I'm not saying it's easy but it can be done and it might take a few years of living very frugally and doing without a lot of things you've taken for granted but it can be done, and my hat's off to anyone that takes this step to a much better life.

Annette

 

[digitS']

Capitalist economies run on debt.

Can you imagine saving enough money before you have children to purchase outright a home big enough for a family? We would all be back to living in dogtrot houses as squatters ... or, more likely, in company towns outside the factory gate.

Either that, or waiting until we were 45 to have children. Hhmmm, might be a good way to reduce the population "voluntarily."

Steve