Comments on: The Cost of Instant Gratification

By: Ryan S.

Ryan S. — Sat, 26 Apr 2008 14:12:40 +0000

Man, oh, man, do I know about instant gratification….

By: Andrew

Andrew — Sat, 12 Apr 2008 16:28:02 +0000

I’m 21 years old and after all the horror stories I’ve heard (and witnessed) I never plan on going into debt except for maybe a mortgage. My parents own a rental business of about 30 houses and during my youth they would always have arguments because they had a ton of debt. My dad paid for most of the down payments of the houses he bought via credit card. Because of the housing boom they were able to sell a few houses and pay off their credit card debt, but I shudder to think what might have happened if not for that.

By: Pinyo

Pinyo — Thu, 10 Apr 2008 15:15:02 +0000

@Mike — Thank you for the suggestion, I will check out Fatwallet (esp. now that Pete seconds it).

@Finally Frugal — I think that’s a great accomplishment. Congratulation.

By: Pete

Pete — Wed, 09 Apr 2008 16:05:26 +0000

I have to second the suggestion for checking out sites like fatwallet.com. You can find great deals on items online and save a ton of money.

As far as buying on credit – I think it is usually not a good idea. We try not to buy something with a credit card unless we know we can pay it off in 1 or 2 months.

Normally we just try to save up.

By: Finally Frugal

Finally Frugal — Fri, 04 Apr 2008 16:58:01 +0000

When I think of all the piddly items I put on credit over the past 20 years (and some not so piddly, of course) I cringe at the ‘real cost’. I never paid off my credit cards on a monthly basis, although I always promised myself at the time of purchase that I would. There have been times in the past when I’ve owed up to $25,000 in credit card debt alone—now I’m down to less than $3,000, and I swear, this time will be the last. Posts such as this one help me remember that when I use a credit card without paying it off I end up spending more money over the years on an item I might use for 6 months.

thanks, Pinyo!

By: Mike Hunt

Mike Hunt — Fri, 04 Apr 2008 12:00:39 +0000

I also buy through places like Fatwallet. Not only do they have a hot deal forum but when linked via them you receive cashback from many sites.

By: Pinyo

Pinyo — Fri, 04 Apr 2008 02:44:40 +0000

@Shawna — good point, especially for electronics. I never buy the latest and the greatest. Always wait for the 2nd or 3rd price cut.

@Bunny — I do the same thing!

@Make Friends — I wish I have time to find the exact dialog — that would have been cool.

@Mark — I don’t know. I don’t believe in buying electronics on financing. Anyway, you could take advantage of 0% transfer?

By: Mark

Mark — Fri, 04 Apr 2008 00:37:48 +0000

I actually bought a laptop in January through Dell Financials and when I saw the first finance charge which was a measly $28 dollars on a 1K purchase, I was shocked! I haven’t paid a finance charge that high in years so it actually enouraged me to increase my payment to pay it off sooner than later.

Overall, I would expect to pay less than $100 in interest on a 1K but it is good to be aware about how much more one would have to pay on something that comes with interest.

It makes no sense to pay extra for something like electronics that will become oboslete in less than 2 years.

By: Faron Benoit

Faron Benoit — Fri, 04 Apr 2008 00:31:29 +0000

I do the same as Bunny. I use my credit card for 85% of my purchases. The trick is to treat it like cash and never be afraid to put some items back on the shelves if you’re over your budget.

By: Jonathan

Jonathan — Thu, 03 Apr 2008 18:40:16 +0000

great analogy from the Matrix, personally I’d take the red pill