Comments on: The High Cost of Low Monthly Payments http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/ Tips for living frugal while still having a life Fri, 12 Mar 2010 19:22:30 -0600 http://wordpress.org/?v=2.8.5 hourly 1 By: Subu http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/comment-page-1/#comment-32531 Subu Wed, 07 Oct 2009 04:21:15 +0000 http://frugaldad.com/?p=3862#comment-32531 Here is a little calculator that tells you how much you end up spending in paying off a debt: http://www.expenseregister.com/Home/calculators/creditCardPaymentCalculator.php Here is a little calculator that tells you how much you end up spending in paying off a debt: http://www.expenseregister.com/Home/calculators/creditCardPaymentCalculator.php

]]> By: Cheapskate Sandy http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/comment-page-1/#comment-32519 Cheapskate Sandy Tue, 06 Oct 2009 19:32:29 +0000 http://frugaldad.com/?p=3862#comment-32519 Can you tell that I also need new glasses from all the errors in the other post?! Thankfully I get my contacts delivered soon. Can you tell that I also need new glasses from all the errors in the other post?! Thankfully I get my contacts delivered soon.

]]> By: Cheapskate Sandy http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/comment-page-1/#comment-32518 Cheapskate Sandy Tue, 06 Oct 2009 19:30:24 +0000 http://frugaldad.com/?p=3862#comment-32518 I'm with Melissa. I just purchased a Select Comfort bed on recommendation of my chiropractor (and the springs now popping up from my mattress) and I used their 0% down, 0% financing for 16 months offer. This is how I justified it for me. 1) I can used up emergency money now and pray nothing happens in the next few months while I rebuild the money. I would also lose interest on the savings. 2) Put it on my existing credit card. My cars is at 8.99% interest so this is a bad choice as well. 3) Don't buy the damn best right now but I am paying copays visiting the chiropractor and I can potentially save some money here. 4) Wait and save the money at home myself and then buy the bed, but again I am spending a decent amount at the doctor on a weekly basis now since my back was thrown out. 5) Buy the damn bed already but make sure I can afford the $150 monthly payment and pay it off at least a month before the 0% expires. 6) I bought the bed with their money and soon my aching back will be in heaven and my chiropractor won't be filling in as my shrink as well. I’m with Melissa. I just purchased a Select Comfort bed on recommendation of my chiropractor (and the springs now popping up from my mattress) and I used their 0% down, 0% financing for 16 months offer. This is how I justified it for me.

1) I can used up emergency money now and pray nothing happens in the next few months while I rebuild the money. I would also lose interest on the savings.

2) Put it on my existing credit card. My cars is at 8.99% interest so this is a bad choice as well.

3) Don’t buy the damn best right now but I am paying copays visiting the chiropractor and I can potentially save some money here.

4) Wait and save the money at home myself and then buy the bed, but again I am spending a decent amount at the doctor on a weekly basis now since my back was thrown out.

5) Buy the damn bed already but make sure I can afford the $150 monthly payment and pay it off at least a month before the 0% expires.

6) I bought the bed with their money and soon my aching back will be in heaven and my chiropractor won’t be filling in as my shrink as well.

]]> By: Melissa http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/comment-page-1/#comment-32467 Melissa Mon, 05 Oct 2009 12:50:59 +0000 http://frugaldad.com/?p=3862#comment-32467 I guess I'm in the minority here. I have a household budget and we will from time to time buy something with X number of months same as cash. I take the number of months subtract one and calculate the monthly payment. I then check to see if we can really afford that. We then make those monthly payments and never pay interest. For us it works great. However, I know many people that I would NEVER recommend this to as this would allow them to get into trouble. For us it works and we never finance more than one thing (excluding the mortgage and 1 car payment, which we are paying off early). But I am also someone who saves money by putting all of our purchases on a credit card and paying it off each month. We have never paid interest on a credit card - the credit card companies must hate us. I guess I’m in the minority here. I have a household budget and we will from time to time buy something with X number of months same as cash. I take the number of months subtract one and calculate the monthly payment. I then check to see if we can really afford that. We then make those monthly payments and never pay interest. For us it works great. However, I know many people that I would NEVER recommend this to as this would allow them to get into trouble. For us it works and we never finance more than one thing (excluding the mortgage and 1 car payment, which we are paying off early). But I am also someone who saves money by putting all of our purchases on a credit card and paying it off each month. We have never paid interest on a credit card – the credit card companies must hate us.

]]> By: Credit Card Chaser http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/comment-page-1/#comment-32425 Credit Card Chaser Sun, 04 Oct 2009 05:15:09 +0000 http://frugaldad.com/?p=3862#comment-32425 Exactly. While that $6 coffee from Starbucks may seem expensive but manageable just imagine what it would be like to have to pay the $14 or so for it all up front rather than in monthly payments and interest like some people do who buy stuff with their credit card and then do not pay it off every month ... :) Exactly. While that $6 coffee from Starbucks may seem expensive but manageable just imagine what it would be like to have to pay the $14 or so for it all up front rather than in monthly payments and interest like some people do who buy stuff with their credit card and then do not pay it off every month … :)

]]> By: mike howard http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/comment-page-1/#comment-32407 mike howard Sat, 03 Oct 2009 15:30:31 +0000 http://frugaldad.com/?p=3862#comment-32407 Exactly what happened to me. A few monthly credit agreements were no hassle when I was working but when I got laid off the reality of all those individual monthly finance agreements kicked in and I was in fairly big trouble. Things are better now butboy, have I learned my lesson! Exactly what happened to me. A few monthly credit agreements were no hassle when I was working but when I got laid off the reality of all those individual monthly finance agreements kicked in and I was in fairly big trouble. Things are better now butboy, have I learned my lesson!

]]> By: John DeFlumeri Jr http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/comment-page-1/#comment-32385 John DeFlumeri Jr Sat, 03 Oct 2009 03:18:02 +0000 http://frugaldad.com/?p=3862#comment-32385 It's so easy to bury ourselves with low payments on a lot of things at once, then the income drops and we're in big trouble. It’s so easy to bury ourselves with low payments on a lot of things at once, then the income drops and we’re in big trouble.

]]> By: Tina http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/comment-page-1/#comment-32382 Tina Sat, 03 Oct 2009 02:24:37 +0000 http://frugaldad.com/?p=3862#comment-32382 It's not just material goods that snag you with this either - watch out for long term contracts for any kind of activity too. Contracts for things like karate can suck up thousands of dollars over the life of the contract, but you don't think about it since it's broken up into "affordable" monthly payments of $150. Sometimes I count myself lucky that that was the only long term sucker bet that I made with money coming off of college and into my first real full time job (hey, I'm employed now, I can afford it!) but it's still been an albatross around my neck for over a year. You pay that sucker whether you go to class or not, and work hasn't been lending itself kindly to making it to class. Learned my lesson with that one to either pay it all up front, or pay as you go! It’s not just material goods that snag you with this either – watch out for long term contracts for any kind of activity too.

Contracts for things like karate can suck up thousands of dollars over the life of the contract, but you don’t think about it since it’s broken up into “affordable” monthly payments of $150.

Sometimes I count myself lucky that that was the only long term sucker bet that I made with money coming off of college and into my first real full time job (hey, I’m employed now, I can afford it!) but it’s still been an albatross around my neck for over a year. You pay that sucker whether you go to class or not, and work hasn’t been lending itself kindly to making it to class.

Learned my lesson with that one to either pay it all up front, or pay as you go!

]]> By: Bobby http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/comment-page-1/#comment-32381 Bobby Sat, 03 Oct 2009 02:18:31 +0000 http://frugaldad.com/?p=3862#comment-32381 I've bought one new car in my entire life (over 40 now). People forget just much cheaper it is to buy a "clean" used car. Agreed, the only payment I want is the mortgage. I’ve bought one new car in my entire life (over 40 now). People forget just much cheaper it is to buy a “clean” used car. Agreed, the only payment I want is the mortgage.

]]> By: Swap Savers http://frugaldad.com/2009/10/02/the-high-cost-of-low-monthly-payments/comment-page-1/#comment-32380 Swap Savers Sat, 03 Oct 2009 00:48:28 +0000 http://frugaldad.com/?p=3862#comment-32380 Thanks for sharing your experience. Thanks for sharing your experience.

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