Whatever ever happened to saving up for what you want?

[gemfyre]

Yeah that. Tonight was a thing on one of the Current Affairs programs about low income people complaining about how much they end up paying in these "buy now, pay later" schemes. One example was a family who had their gas and water cut off because they couldn't pay off a home entertainment system.

Fuck, if you can't afford it, WHY DID YOU BUY IT?!! No-one NEEDS a home entertainment system. Right now we're managing on a TV that must be at least 20 years old. And if we can't afford something that's not an absolute neccessity - we don't buy it!

There are loads of nice things I want, I have a long list, but you know what? I do that old fashioned thing called SAVING UP. Then when I've saved enough money, I get the thing I want and start saving for the next thing. It makes it a lot more rewarding AND I don't have to worry about paying it back at a later date and interest and all that crap.

I am so glad that BankWest just came out with their debit card - so I can purchase online and book things and do all that stuff that requires a credit card, without actually spending any money I don't have.

If you're on a low income, don't go buying luxury items you can't afford. Or if you do don't cry about it when you can't pay it off.

Comments

[lotus79.livejournal.com]

Heh. Been there, done that, screwed myself up big time.

Totally agree with you, but also the stupid finance companies *should not* be lending to people who can't pay it back. When I applied at stoopid age of 18, they actually counted my supplement loan as *income*. I ended up owing $1500 on a $500 VCR.

But yeah. Stoopid people start making with the sense, already!

[firvulag.livejournal.com]

Heh, and I had the problem of them NOT letting me do this because they wouldn't count my pension, which is far more suitable as an income when it's gauranteed for 5 years and not really likely to have gone away after than anyway (and didn't). I did however just get my parents to buy my fridge interest free thingy and when the interest free period was up, they paid it all off and i just paid them back what was owed in the end.

I'm glad for this as it would have saved me around $500 in interest, on a $650 fridge.

I did however get a bank loan for $5k when i moved over here from NAB. It was a student loan with 3 years without need for payments and no interest. this was great until i decided not to pay any of it back for the first 2 years and then found i couldn't pay it off and ended up borrowing $6k to pay it off after the interest was killing me. definitelly a learning experience I wish I'd missed.

[bleedingwillow.livejournal.com]

Amen. I don't understand the obsession with expensive things. Myself, I'm a function girl. If it works (and it's cheap), then I'm all over it.


I do understand payments versus buying though. Like right now my fiancee has crappy credit, so she's doing payments on a TV (pays it off next month actually ^-^) rather than saving up to buy it partly to improve her credit, and partly because it stays under waranty longer that way and she has a 6 year old son...heh.


But seriously...people who can barely afford food buying expensive shit they can't afford boggles me. My ex's parents did that and then (surprise surprise!) things started getting reposessed and they had to move back to Idaho. *eyeroll*

[firvulag.livejournal.com]

well, buying though payments CAN be a good thing, so long as you are paying off just the principle amount and interest isn't a factor. the problem with things like rent to own and "no payments for x months" is that you end up paying more for it from the interest. even the no interest for x months ones can get you if you just pay the amount they say, as that doesn't actually pay it off in the time that the no interest period happens, and some of them have early closure fees so they get the interest either way (or at least some of it)

having said that, if you are careful, it's a great thing. I've done it before and will probably do it again, provided i can afford it.

[vegetus.livejournal.com]

Couldn't agree with you more, perhaps we are just old fashioned? I do have a credit card though as I got one before they had those nifty debit card things and they are convient when travelling OS.

[aequanoctis.livejournal.com]

Amen to that

I know at least 3 people who were 3000+ in debt before they were 20. It's insane. They're handing credit card like cookies because the more irresponsible the guy, the best for them!

eheh speaking of cookie, my bf actually once signed up for a Credit Card at the grocery store, because they were handing free cookie bags with the sign-up! He got the cookies but never activated the card. IT WAS ALL ABOUT THE COOKIES!!

[sternenglanz.livejournal.com]

Going in debt up to your eyeballs for shiny crap isn't just a low-income problem; people making literally millions are broke because they spend faster than they earn.

I've been without a car for over six months in a town that is very pedestrian-unfriendly because I don't feel comfortable taking on another loan right now. It baffles me that people will spend money they don't have (and won't have) on something that's not an emergency/necessity.

[kayla-la.livejournal.com]

SAVING?? What is this archaic term??

But yeah, I do the same thing. I do art commissions whenever possible and just save the money until I can buy that shiny game I've been wanting, or some new pants, or that neat soundtrack.. and I'll do the same thing if I ever feel like getting a car. It's really not that hard to save, but I'm the only person I PERSONALLY know that does it!

I have a friend, I love him to death, but he's constantly in debt because he buys stuff with his credit card before he actually has money in his hand. He always assumes it'll be okay because he SHOULD be getting money for this or that before he has to pay off the card, but then something occasionally goes wrong and he's screwed because he lacked patience and foresight.

[mistress-wench.livejournal.com]

It was probably a very smart thing of the family to whinge about it on TT. You do realise that the family would have been paid for their time, right? ;)

[jet-ski.livejournal.com]

Ahh, and its ALWAYS cheaper if you pay cash - you can get at least $100 knocked off most things if you say, I'll buy it here and now with cash!

I just wanted to put my 2 cents in and say I don't have a TV at the moment AT ALL but it probably doesnt count seeing as though im in Thailand.

Hehe.