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debt

Aug. 27, 2012, 10:30 p.m.
Posts: 277
Joined: June 3, 2009

Mortgage,
cc paid off weekly, just use it for gas.
No other debt.

Borrowing costs you money.

I can jump and turn my bars.

Aug. 27, 2012, 11:17 p.m.
Posts: 7707
Joined: Sept. 11, 2003

Im of the opinion there is no true "0%" interest. These companies are in the business of making money plain and simple.

Paying off your credit card monthly is pretty much a 0% loan. Cash back credit card paid off monthly is the one thing where you can get a little bit back (usually 1-2%, assuming you put enough on it to cover any annual fees each yesr). The downside is the merchant is getting screwed by the CC. But I figure that is the cost of convenience for the merchant, otherwise, nobody would take Visa or Mastercard.

Mortgage,
cc paid off weekly, just use it for gas.
No other debt.

Borrowing costs you money.

Why would you pay your CC off weekly? Your credit card purchases, by law, are interest free for a minimum of 21 days.

Aug. 28, 2012, 5:19 a.m.
Posts: 277
Joined: June 3, 2009

I get paid weekly so weekly it gets paid off.
Pretty simple, receive paycheck, pay bills.
"Just pay it off for fucks sake."

I can jump and turn my bars.

Aug. 28, 2012, 5:33 a.m.
Posts: 4692
Joined: July 9, 2004

Paying off your credit card monthly is pretty much a 0% loan. Cash back credit card paid off monthly is the one thing where you can get a little bit back (usually 1-2%, assuming you put enough on it to cover any annual fees each yesr). The downside is the merchant is getting screwed by the CC. But I figure that is the cost of convenience for the merchant, otherwise, nobody would take Visa or Mastercard.
.

That wasn't what we were talking about. The initial question was financing a vehicle on "0%" interest. The opportunity cost of the interest is rolled into the cost of the purchase.

I'm with you on the use of credit cards the way you describe but that isn't a debt because you have the cash to,pay it off completely every 30 days. It effectively works as a debit card in this respect.

Aug. 28, 2012, 8:41 a.m.
Posts: 0
Joined: Oct. 17, 2008

I have Changed a lot in the past few years. Non mortgage debt is an evil I hope to be rid of by the end of 2012. I've gone pre paid on my visa as all the amazing 'points' ive used over the years have actually cost me about triple what the trips would have if paid cash.

Oh well. You live. Sometimes you even learn

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Aug. 28, 2012, 9:32 a.m.
Posts: 0
Joined: Feb. 2, 2005

I have Changed a lot in the past few years. Non mortgage debt is an evil I hope to be rid of by the end of 2012. I've gone pre paid on my visa as all the amazing 'points' ive used over the years have actually cost me about triple what the trips would have if paid cash.

Oh well. You live. Sometimes you even learn

Why go pre-paid, just pay at the end of the month? Never paid interest on my CC's since
I got remarried (first wife not so good with my money…and no, she never worked). I got
so many miles I could go anywhere with my wife 1st class a couple times over. Problem, is
I don't have the money to travel and when I do, I'm working too much to travel…[sigh]oh, first
world problems.[/sigh]

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"i surf because, i"m always a better person when i come in"-Andy Irons
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Aug. 28, 2012, 10:18 a.m.
Posts: 14373
Joined: Nov. 20, 2002

Well let's do some math here.

I financed my truck at 2.9% and my "savings" are averaging 11%.

I paid 16k below sticker price.

Am I doing it wrong?

Since the Americans shit the bed the economy has been pretty wierd, it forced GM [HTML_REMOVED] chrysler into gov buyouts which made for some great deals on trucks IF you got cash or a job BUT it is still debt

You got the good highend job in the forest industry playing with the big tonka toys but how many mill workers in PeeG or Burns lake are not so lucky actualy they are fucked with just one spark and probably carrying a bunch of debt if I know Peeg cuz that IS the mindset, compared to if they had tightened their belts [HTML_REMOVED] paid-off their debt ?

As long as you got that job OR cash you are golden, that can change with the job but cash is always king and most businesses still accept cash

Aug. 28, 2012, 10:40 a.m.
Posts: 7655
Joined: Feb. 15, 2005

Debt due poorly negotiated separation agreement and no profits from the business the last couple of years.

Currently restructuring and if things go well will be debt free, less mortgage, inside of two years.

Debt includes mortgage for spousal support pay out (most hated), line of credit (second most hated), loan to buy second house (investment), loan to buy into company (investment) and mortgages on property.

I have 21,474,850 rep points...

My blog - read it!

http://www.citizenclass.ca

Aug. 28, 2012, 11:37 a.m.
Posts: 548
Joined: Sept. 2, 2010

Do this:

Next time you want a new car and you see a 0% offer - go in and negotiate a cash price.

As soon as you have agreed on the total cost, taxes, options, fees whatever, get out your cheque book and then pause. Then ask - actually that 0% thingy looks nice - let's do that -and see the sales guy waffle and flutter.

Aug. 28, 2012, 12:06 p.m.
Posts: 1094
Joined: May 11, 2005

Do this:

Next time you want a new car and you see a 0% offer - go in and negotiate a cash price.

As soon as you have agreed on the total cost, taxes, options, fees whatever, get out your cheque book and then pause. Then ask - actually that 0% thingy looks nice - let's do that and see the sales guy waffle and flutter.

^ THIS.

typically, you either get an extra cash rebate or the 0% (or very low interest) offer, not both.

If you pay cash for the vehicle, the "total cost" will be end up being lower than the "total cost" you end up financing with the 0% offer.

In other words, when you compare cost of cash payment vs financing and making interest on "the savings", you need to also consider that the total cost of the vehicle will be a bit higher when you finance:
The comparison will be along the lines of 30,000$ financed at 2.9% and making 11% on "the savings" vs paying 28,000$ (or whatever extra discount you can get from paying cash).
Financing might still work out ahead, but the extra discount you get from paying cash needs to be factored in…

:canada: :czech:

Aug. 28, 2012, 12:10 p.m.
Posts: 122
Joined: Oct. 23, 2003

youd save even more money by not buying a new truck

Ha Ha! Made you look.

Aug. 28, 2012, 12:27 p.m.
Posts: 34255
Joined: Nov. 19, 2002

youd save even more money by not buying a new truck

Not if you keep it for a while.

It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.
- Josiah Stamp

Every time I see an adult on a bicycle, I no longer despair for the future of the human race.
- H.G. Wells

Aug. 28, 2012, 2:11 p.m.
Posts: 5
Joined: Jan. 7, 2006

Debt free. I can thank my parents for letting me live at home while going to school and having an RESP courtesy of my parents. It's really the way to do it.

Aug. 28, 2012, 2:46 p.m.
Posts: 0
Joined: Oct. 17, 2008

Why go pre-paid, just pay at the end of the month .

Because I am dumb and have no self control.

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Aug. 28, 2012, 3:34 p.m.
Posts: 18445
Joined: May 29, 2004

youd save even more money by not buying a new truck

Thanks for the shocking revelation. What's next,one really doesn't need an iphone with a data plan when a pocket full of quarters will do just fine?

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