nanarchy said:
SvennoJ said:
Sure if you don't mind being stuck in a contract, want to use live for 2 years and too lazy to look for deals on the console and/or xbox live gold.
A smart man holds on to his money, doesn't enter unnecessary contracts, or pay for things in advance, nor does he have unnecessary debts. But I guess I'm one of the very few that didn't buy a car until in my 30's when I could buy it without a payment plan.
Great for people brought up on instant gratification. It would be smarter to save up, buy it when you can afford it, probably with a price cut in between or with a good deal, plus plenty games will be cheaper by then. |
While I mostly agree with what you say you need to understand not all debt is bad debt and given the contract is only to pay what you would have paid anyway outright pls a small fee it is hardly relevant. I could buy a car outright but I lease instead so I can claim a percentage on tax for business use. I could pay off my investment property but the interest rate on the debt is so low that at the moment I am better off leveraging those funds elsewhere. At 4.5% it is actually not a particularly bad option even if you have the money to buy it outright (that is if you have some other use for the money at the time, while I would not bother for such a small amount I would actually be better off with the payment plan and putting those funds into my investments which average betweeen 10-15%pa).
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Different philosophy. I worked hard to pay of my mortgage as fast as possible and now I live completely debt free. It feels awesome, true financial freedom. The bank tried to sell me a mortgage again so that money can 'work for me'. Sure I'll take a risk with my house while the bank collects a guaranteed percentage of it every year, no thanks.
I have some investments too, but nothing I can't miss.
Anyway that's off topic. Payment plan is fine for certain people, not for me anyway. I also wonder how beneficial it is to retailers? What cut do they get? They have a lot less room to offer deals on these plans. Buy one on sale for $200 plus gold live for $40, seems to be the better option. You get to keep the remaining $178 indefinitely.
