| Adinnieken said: You didn't elect to use a 1:1 analogy. You used an absurd analogy. The EFA plan offers consumers a low entry price of $100 at the cost of $38.74. That's incredibly cheap. If you purchased that same device on a credit card, you had fair to good credit (which means you're doing very well) and had a credit card with an APR od 20%, your monthly payments would work out to $15.30. If you repaid that purchase at that rate, at the end of four years (48 months) you'd end up paying $734.40. |
I'm sure that's true - but then again, that just means that choosing this different type of credit is an even more stupid idea.
| Adinnieken said: Again, not every person can afford to plunk down $300 or $360 to make a purchase. I remember when I was in my early teens and 20's and I certainly wasn't able to do that. For the person that can afford the cost of the console through the EFA and they can afford the monthly payment, you don't see this as a good deal for them? They should either pay fully, use a credit card, or buy it through rent-to-own services. This isn't a valid, affordable option? Is that what you're saying? |
I guess what I'm saying is: If you cannot afford a 360 (or any other unnecessary luxury good) right now, don't take a credit plan running for years to be able to, even if the additional costs of E.F.A. might be relatively cheap compared to other types of credit. Buy a cheaper or used model instead, or simply wait until you can afford it. Prices for brand new 360 models start at just about 130 Euros - if you cannot even afford that kind of money then you probably have more important problems in your life right now than the absence of a 360.
But I have to admit my attitude might really be heavily influenced by national mentality, as OdinHades already pointed out. Over here credit cards and the whole concept of buying rather low-priced goods on credit is rather unpopular. It doesn't have a good reputation, every now and then there are horrifying articles in the media telling the sad stories of teenagers and lower class people who have more debt than they'll ever be able to pay, because they started paying things on credit and soon got in trouble because they lost overview of their actual financial situation or suddenly couldn't pay due to unforeseen events.
I guess the attitude is simply a bit different in the states, where I've heard people pay almost everything by credit card.
