How do you feel about financing?

[Caoineag]

Thought it would be interesting to poll this because I have encountered a variety of sentiments on this matter.

My vote is that as long as I am not paying interest, I love discounts and having a little extra time to cash flow items but I am pretty sure I am in the minority.

[disneysteve]

I didn't vote because you can only pick one and I also don't like the choices. I think it totally depends on the situation, what is being financed, for how long, at what interest rate, etc.

As a broad generalization, I think financing can be just fine if done properly. If not for financing, I wouldn't have had a couple of my cars, I wouldn't have had my undergrad and graduate education and I wouldn't have my home, just to name a few things I've financed over the years, so to say it is never okay to finance would be ludicrous. On the other hand, if somebody tells me that they just bought a brand new car with a 7-year loan, I'd have to say that was a lousy move and shouldn't happen for anyone ever. So that instance of financing is never okay.

As for zero % financing, it still depends. Overpaying for a brand new car in order to get 0% instead of buying a much cheaper 2-3 year old car at 5% or 6% doesn't make the 0% a good deal. Opening a new credit card account at every store you go to just to get 15% off your purchase isn't a good deal.

So my answer is a definite 'It depends on the situation.'

[arthurb999]

Not too many peope buy houses for cash

[Caoineag]

Actually I am talking normal purchases you were going to make anyways.

If I am buying a lot of items, I am okay with opening a card solely to get the discount. Its never been an issue, hasn't hurt my credit score and I have never carried a balance on a store card. Hence the option I picked. But I am aware most people are very much against that.

I try to be specific but sometimes I just don't pay close enough attention.

[disneysteve]

Actually I am talking normal purchases you were going to make anyways.

I suppose if you want to get technical, every time I pay with my credit card, I am financing the purchase. I'm borrowing the money from the CC company and will pay them back at a later date. In my case, I pay it in full each month so it amounts to 0% financing. I think that is absolutely fine. I do it nearly every day.

I do not think it is okay to use your credit card and not pay the bill in full each month unless you have a 0% rate on the card, and then it is fine as long as you will pay off the balance before the 0% deal expires.

[kork13]

I suppose if you want to get technical, every time I pay with my credit card, I am financing the purchase. I'm borrowing the money from the CC company and will pay them back at a later date. In my case, I pay it in full each month so it amounts to 0% financing. I think that is absolutely fine. I do it nearly every day.

Ditto. It's the simplest option, and so long as I pay it in full every month, it's essentially free financing. I encourage any financially responsible person to do the same.

[simpleyme]

I can not get it to make sense for me to finance things I have money for

I do not finance but I could care less if other do or not ;-)

[jIM_Ohio]

Financing depends more on the PERSON than the object being purchased.

I finance cars, I purchase things on CC and I financed my house. All debts are current or paid in full (in case of cc).

Others would be best served financing nothing and paying cash for everything.

[disneysteve]

I can not get it to make sense for me to finance things I have money for

It depends on the situation. If you can finance something at 0% and keep your money in an account earning 3%, that makes sense.

[simpleyme]

Financing depends more on the PERSON than the object being purchased.

I finance cars, I purchase things on CC and I financed my house. All debts are current or paid in full (in case of cc).

Others would be best served financing nothing and paying cash for everything.

so ize no finance cuz not smart as yoo?

[simpleyme]

It depends on the situation. If you can finance something at 0% and keep your money in an account earning 3%, that makes sense.

I guess I just prefer to pay for things whats everyone buying on 0 %anyway?

[disneysteve]

I guess I just prefer to pay for things whats everyone buying on 0 %anyway?

As I said, every time I use a credit card, I'm doing 0% financing until the bill comes, so pretty much everything I buy from gas to groceries to clothing to travel costs to dining out to whatever else gets financed at 0% for a month or so.

People take advantage of 0% offers to buy everything from cars to appliances to furniture and more. Used properly and responsibly, it can save you a bunch of money.

[Maismom]

I'm for it as long as I get extra (like extra discount or rewards). I paid them off before I pay any interest anyway.

I also charged my tuition when AMEX had 15 mos. 0% interest offer. That buys me time till I get reimbursed from my company. I have to finish my courses before I get the money back

[simpleyme]

As I said, every time I use a credit card, I'm doing 0% financing until the bill comes, so pretty much everything I buy from gas to groceries to clothing to travel costs to dining out to whatever else gets financed at 0% for a month or so.

People take advantage of 0% offers to buy everything from cars to appliances to furniture and more. Used properly and responsibly, it can save you a bunch of money.

yes it sounds like it works for you ;-) I just see little value for ME in having a 30 day loan;-)

I have found buying with cash is they way to really save money but I guess that may not work for everyone either

if I want a couch I can just ask for 3 percent off as they mark stuff up to cover all the merchant fees , pay for it and be done with it

[disneysteve]

yes it sounds like it works for you ;-) I just see little value for ME in having a 30 day loan;-)

if I want a couch I can just ask for 3 percent off as they mark stuff up to cover all the merchant fees , pay for it and be done with it

I don't use the CC because I need the loan. I use it because it is very convenient and because of the rewards I earn. Last year (2007) we earned about $900 in rewards using CCs to make purchases we would have made anyway, so why not use the cards and get all that money back?

As for that couch, you are absolutely right. The furniture stores that advertise 0% until 2012 usually say in the small print that there is a 10% discount for cash purchases, so the "free" financing isn't really free. But if you charge on a 0% CC, it really is free, as long as you pay on time.