If you buy something today that you cannot afford, and you rely on the interest free period to save up for the item, then you cannot really afford it and the chances are you will end up paying interest. You are a finance companies' best friend and you are in the trap. The logic is good but there is no free lunch. If you are happy with this arrangement, then go for it but do the math and check the amount you are gonna pay at the end. If you don't like the numbers, save up your pennies and do what our parents did...wait until you have the dosh.
If you can't afford it now, you can't afford it. Your lucky numbers will not come up. The promotion isn't just around the corner. That wealthy elderly relative who is 97 isn't popping her clogs anytime soon, believe me she is going into the Guinness Book of Records in 20 years time and only then because she fell off a ladder cleaning her windows.
Long term readers of this blog know my story and how much I hate scams and crooks. It is real easy to get done and there are many ways. You think you are smart and it won't happen to you but in reality, sometimes you close your eyes to the truth as you so want to believe in the fairytale ending. If you go into debt for that little thing you just gotta have, don't believe the salesman, he isn't your friend. An example from yesterday:
And we left. Now, there is nothing really wrong with this. Actually, it was a nice set but we have 2 lovely two seaters and the point is I just want a cool Lazy Boy. My issue is that there I am with two small children and without knowing anything about me or my finances, this salesman just dangled a carrot with a, when you think about it, ridiculous idea.
Me to Mrs R "I really want a Lazy Boy, I just gotta have one, Leather, Mocha Colour, Rocks backwards, footrest - I'm happy to forgo the fridge and vibration thing. I just want MY OWN Chair."
Mrs R "OK. Labour Day sale at Harvey Norman?".
30 minutes or so later
Me to Mrs R "This is the one. Soft enough for me to sink into, yet big enough for me to see the TV with Ms R on one side and Little Ms R on the other". A fact proven by the trial of this arrangement which must have looked interesting to passers by.
Salesman "Nice leather set this. Big 3 seater and 2 Lazy Boys. Reduced from $6,199 to $4,999".
Mrs R "We just want the one Lazy Boy, how much would that be?".
Salesman "Oh. It is on special for the whole package. If you want just the one chair it'd be over $2,500. Its cheaper to buy the whole set."
Mrs R "You can't sell just the one chair?"
Salesman (avoiding the question) "You could buy the whole lot on Interest Free Credit and then sell the sofa and spare chair on Trademe dot com" - never trust anyone in New Zealand who doesn't know that Trademe is a "dot co dot nz" domain - you are either living in a bubble or stupid and do not know to zip up your trousers after you pee. Harsh but fair.
Mrs R "Really?"
Salesman "Oh yeah. I had a friend who bought one like this and he sold it for over $600 on Trademe".
Mrs R "Oh."
Me "?#*$^&% kidding me. NO."
I'd pay $4,999 and then try to sell two "second had, as new" items on Trademe with buyer collects. Maybe I'd get $1,000 for the spare seat and sofa, maybe I wouldn't. Either way I'd have a debt of $4,999 and even if I got my $1,000 maybe I could use that cash to buy something else. After all, the debt is interest free, nothing to pay for a few years and by then I'd have the cash, right? Right?
Think I'll follow the Trademe Queen and enter MarthaWorld™. Flog off my genuine second hand hand stuff and just buy what I want with cash......but not from Harvey Norman. Anyone know where I can buy just one Mocha, soft, big leather Lazy Boy at a great price?