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Originally Posted by Tee  I have just never understood that thinking. How is it easier to pay later than to save and pay when you have all the money? I would think it's easier to pay 400.00 for a couch than to pay 4000.00 for it in weekly payments over 15 years.
It's called fiscal responsibility and living within your means. |
15 years might be a little extreme. RAC will do up to 3 years I think. Not sure of colortyme, but we will only do up to 2 years. We also don't have any couches that you would pay 4000 for. But, when you need something, like a stove or fridge, but don't have 800 bucks just laying around, 100 a month for 12 months is doable. But, put that on a credit card, paying the minimum's, as many do, you're talking 25 a month for the next 8 years or so. I agree that other things can wait, like a bigger tv, or a newer couch. I always prefer to save up and buy outright. It is the smart thing to do. But, many people want it now, and can afford, or at least think they can afford, 100 or so a month. And with most things being on 12 month agreements, and some higher end ones on 24 months, people know how long they will be paying for it. In order to save up, could take 3,4,5, or more years, depending on how bad someone is at saving money. Or if they put it on a credit card, yeah, it could run on for 15 years, and with interest piling up, you might pay 2 grand for a 500 dollar couch.
In the end, it's all money. We want it, they don't have it, so they make monthly payments to get it. And they do it voluntarily, so to each his own.