I was watching this show today that revolved around a couple that was in debt and it was amazing as so many of their possessions were acquired through some kind of credit financing plan. Even items like a vacuum cleaner and couch were acquired through financing. Not surprisingly they were in a lot of debt.
My mind when it comes to financing items is to only do so if it is an extreme necessity while costing a lot of money. That would be something like a house. There is no way I would finance like say a couch though as I would like to think if you can’t just outright buy an item like that then you shouldn’t be buying it in the first place as it is out of your lifestyle budget.
Reminds me of when I was talking to this car salesmen before where I was just looking around for the heck of it. He asked me if I was looking to finance a car and I said no as if I was buying one that I would just outright buy it. He then told me that it doesn’t make sense to just outright buy it as if I had that much money I would be hiring a guy to just go down there to buy it for me. Course, I recognize that he said that to try and weigh in if I actually did have the ability to outright buy it.
But the funny thing in that case I thought was that if the guy so desperately wanted me to get a car through financing that in the end it must be way more expensive where he would more money that way. So it just makes sense where if you can’t buy it outright in my mind that you should try and save up more funds first.