Southerrrngirrl Posted January 16, 2009 Report Share Posted January 16, 2009 Everything in our home we have cos we saved up for it and paid cash, that includes cars. Do not get sucked into the "buy now pay later" or "5 years interest free" cos they are a crock! Why not? I just paid off our $1,300 fridge/freezer this month. It was a buy now, pay later,x years interest free scheme. It was an unnecessary purchase, only reason we bought it was because we had just moved into our house and our extremely old fridge didn't match the new kitchen joinery. All I paid was the ticket price of the fridge plus maybe $50 for some sort of fees. It was convenient for me at the time, because I didn't have the cash lying around to pay for the thing. I took advantage of the offer and now I own the fridge. Simple as that. IMO nothing wrong with buy now, pay later as long as you are aware that you will eventually have to pay and pay it off before the interest kicks in. Quote Link to comment Share on other sites More sharing options...
Barrie Posted January 16, 2009 Report Share Posted January 16, 2009 Why not? I just paid off our $1,300 fridge/freezer this month. It was a buy now, pay later,x years interest free scheme. It was an unnecessary purchase, only reason we bought it was because we had just moved into our house and our extremely old fridge didn't match the new kitchen joinery. All I paid was the ticket price of the fridge plus maybe $50 for some sort of fees. It was convenient for me at the time, because I didn't have the cash lying around to pay for the thing. I took advantage of the offer and now I own the fridge. Simple as that. IMO nothing wrong with buy now, pay later as long as you are aware that you will eventually have to pay and pay it off before the interest kicks in. Chances are that had I paid cash for it I would have saved another $200. A couple of years ago when 50inch plasmas were $6000 our tv blew up and we decided to buy another. Best deal advertised was $5995 interest frees over 2 years, I paid cash and got it for $3500. 3 years ago we did up the back half of the house. New kitchen etc... the white ware was $11000 but again I got it for $9000 for top quality. Thing is that over the last 2 years, interest rates for money borrowed for business has been rising to 16% and the "interest free" deals that have been advertised have to be paid for by the retailer so they are paying for that and including the interest on their retail price. It may well be the best deal for you but if they can get their money out of the sale quicker and put it in the next item, they are achieving a greater stock turn over and therefore making more money in the long term. Every true manager (not just a person in charge of a outlet) reconises the only way to make money is by turning over stock.... not by large markups. The supplier that I buy 99% of my stock from says that I am the only one of his customers that has increased sales in the last 4 months and our prices are the same as they always have been which is cheap and designed at people that pay up straight away. October was a busiest ever month November our 2nd best November December our best ever December and January will be our best ever January Stock turnover is the only way you can make money, if stock is sitting in a shop, its costing interest for the overdraft that has paid for it Quote Link to comment Share on other sites More sharing options...
alanmin4304 Posted January 16, 2009 Report Share Posted January 16, 2009 I agree with Barrie but what annoys me is when places have these interest free deals (that cost them heaps) but will not look at a decent discount for payng cash. I have even found places that will accept credit cards (that cost 4%) but still don't give a discount for cash. You have to keep looking around because as things get tighter sensible business owners will be doing deals. There are advantages in every situation. Quote Link to comment Share on other sites More sharing options...
dimebag Posted January 16, 2009 Report Share Posted January 16, 2009 I agree with Barrie but what annoys me is when places have these interest free deals (that cost them heaps) but will not look at a decent discount for payng cash. I have even found places that will accept credit cards (that cost 4%) but still don't give a discount for cash. You have to keep looking around because as things get tighter sensible business owners will be doing deals. There are advantages in every situation. yes i had this last week bought a new tv on special, and offered to pay cash if i could have extra discount. they said no thats as low as they could go. so on hp for 2 years interest free. cost $35 establishment fee and that was it. will put the cash in a savings account and get interest on it then pay it off just before interest kicks in. Quote Link to comment Share on other sites More sharing options...
Jaide Posted January 16, 2009 Report Share Posted January 16, 2009 Yeah, in my line of work we're expendable. The last thing businesses are after in the midst of a recession is web development - so I've been trying to find IT work for about a month now with no luck. A log of the IT jobs on that website have many thousands of views, and tens, if not hundreds of applicants. Here's hoping things pick up soon - but it doesn't look likely... I'm currently looking for a new job and all I find is IT jobs - loads of them! Must be a glut in Wellington then - not to mention the pay is very good, maybe I should get into the industry if I learn how to plus the long dangly cord thing into the right socket Quote Link to comment Share on other sites More sharing options...
alanmin4304 Posted January 16, 2009 Report Share Posted January 16, 2009 I know all about puters too There is this button you push that turns it on. The cleverest part is that you push the same button and it goes off. That is probably why it is not labeled. It is an absolute godsend being psychic (or is that psycho?) I could get a job in IT too ---smashing up the computers that have become antiquated. Quote Link to comment Share on other sites More sharing options...
David R Posted January 16, 2009 Report Share Posted January 16, 2009 I hear what you're saying Barrie, but when I bought our TV the RRP was $2999, they were advertising it on special for $2500 and said he'd do it a bit cheaper for cash. I got it for $1800 and 12 months interest free. Quote Link to comment Share on other sites More sharing options...
shadowfax Posted January 16, 2009 Report Share Posted January 16, 2009 the bad thing about buy now pay later is you dont know what your circumstances are going to be "later" & you may not have the means to pay for what you have bought. unless you really need something, like a fridge because yours has died it way better to save up & then buy what you want. JMO Quote Link to comment Share on other sites More sharing options...
Zev Posted January 16, 2009 Report Share Posted January 16, 2009 Everything in our home we have cos we saved up for it and paid cash, that includes cars. Do not get sucked into the "buy now pay later" or "5 years interest free" cos they are a crock! Our stepdaughter had an idiot boyfriend (no longer has him, thank goodness!) who had a dunger of a car - early 90's Mazda 323, painted it himself a nice mat black colour, he was constantly fiddling with the engine even though he knew nothing about it. He didn't have two cents to rub together and when he did it was spent on the car, which made no difference to the way it prefomed or looked, it was still a dunger. Anyway, it had mags on it, that were - ahem.. repossessed when the guy who owned them got out of prison and found out who had his mags after one of his 'mates' had sold them for some money. So they turned up, lifted the car up, took the mags off and left the car on the ground - stepdaughters boyfriend meanwhile hiding in the flat cringing in the corner and praying that they don't want come inside and have 'words' with him. The upshot is, after making his girlfriend ring us and ask if they could borrow a set of wheels for the car (didn't mention what had happened to the mags, we found out from her mother) as he was loading them into our stepdaughters car, he said to my husband that he was going to go down to the Mag place in town and get some new ones, because you could get them for a dollar deposit.... My husband virtually dropped the wheel he was carrying and says something to the effect of 'you had better come inside and we will have little a talk...' The young ones these days have no idea, unfortunately we live in a consumer society, where we are judged not by what we do, as was the case in the past, but by what 'brands' we display to society. You could work as a septic tank cleaner, but when you go out at night, as long as you have the 'right' car, phone, brand of clothes, no-one is going to blink twice. Quote Link to comment Share on other sites More sharing options...
alanmin4304 Posted January 16, 2009 Report Share Posted January 16, 2009 Some of the nicest people I have met were septic tank cleaners. And they never had mags on their truck. Quote Link to comment Share on other sites More sharing options...
Billaney Posted January 16, 2009 Report Share Posted January 16, 2009 Only mags i get have pictures of fish in them Quote Link to comment Share on other sites More sharing options...
DonnaM Posted January 16, 2009 Report Share Posted January 16, 2009 I guess it all affects different people in different ways. I've just taken on two 20 yr old turtles that the owners were VERY upset at having to rehome...but their situation has meant now having to downsize and move out of their home. Would be very hard to have to give up their pets of 20 yrs (and their adult cat) as a result of financial situation. Quote Link to comment Share on other sites More sharing options...
David R Posted January 17, 2009 Report Share Posted January 17, 2009 Zev I see what you're getting at, but what is your point? Who has to be responsible here, the finance companies for trying to make a living or the people who are too foolish to manage their money and live outside their means? What ever happened to good old fashioned personal responsibility? The problem is that a lot of younger people have no idea of the concept of being accountable for their actions, and IMO the root cause of that problem is their upbringing, not loan sharks... *edit* and busy-body governments getting involved in supposedly free markets and forcing/encouraging banks to offer mortgages to people who they usually wouldn't (because of their inability to service the debt) only make things worse. Far far worse... Quote Link to comment Share on other sites More sharing options...
alanmin4304 Posted January 17, 2009 Report Share Posted January 17, 2009 When did the government force/encourage banks to offer mortgages to people they normally wouldn't? Quote Link to comment Share on other sites More sharing options...
lmsmith Posted January 17, 2009 Report Share Posted January 17, 2009 The government is trying to inject cash into the economy to stop/turn around the recession. In real terms, unemployment has gone up to 7% in the last 2 years (the national target is 8%) and the amount that people owe hasn't gone up in the last year. There was no recession, people were just holding on to their liquid assets, rather than spending. When they don't spend, they cause people to lose their jobs, causing a recession. What we need is people to start having faith in the economy, and having liquid assets that they can spend, which will kick start the economy. The best way for the government to do that is to give loans, which will start spending. Quote Link to comment Share on other sites More sharing options...
reef Posted January 17, 2009 Report Share Posted January 17, 2009 The best way for the government to do that is to give loans, which will start spending. All that does is create a short term fix. People have to learn to live within their means. Debt has to be repaid and borrowing more money will not help. I say raise the interest rates and give people tax breaks if they save, Stop all chinese imports and raise prices so companies can make money and pay decent wages. We think it is great to get goods cheap , but all that does is impact on nz companies who will stripe staff so they can reduce overheads. Quote Link to comment Share on other sites More sharing options...
lmsmith Posted January 17, 2009 Report Share Posted January 17, 2009 A recession isn't caused by debt. A recession is caused by people loosing faith in the economy and the strength of the dollar, and not spending. Sure, debt is a contributing factor, but if you look at the US where the recession is hitting the hardest, they have a lot less debt than the average NZlander, but also a lot less faith in the current economy. Stopping imports won't help, if you stop imports, people have even less faith in the dollar. Also, companies importing still pay tax (companies tax, GST, import tax), so we're not necessarily losing out by importing. In the case of a real recession, they usually end by war, which prompts the government to inject cash into the system by increasing minimum wages, decreasing tax or giving cash bundles, not by putting a quota on importation. 80% of the New Zealand business market is made up of small businesses (under 50 staff), many of which are service oriented. Because we can't get back into the mass production of goods market, we need to use our strengths and export meat, dairy and encourage the tourism market. This will create jobs, and New Zealanders will start spending again. Education about the dangers of debt need to be initiated by the Government in schools at a young age. 5 yr olds need to be taught how to save, and in college, kids should be taught the benefits and risks of HPs, renting appliances and houses, how to apply for loans and the dangers of credit cards. We're never going to do any better unless we have an education scheme. Kiwisaver shows that even a huge incentive won't encourage everyone to save. Quote Link to comment Share on other sites More sharing options...
alanmin4304 Posted January 17, 2009 Report Share Posted January 17, 2009 I think people forget that many of these things are about expectation. My mother is 95 and has never owned a credit card or had anything on time payment,worked until she was over 70 and went through the real depression. I remember the excitement when they got the first piece of carpet they had ever owned--it was in the front porch, was more like feltex than carpet and was not much bigger than the toilet. We now think we are entitled to buy a house fully furnished and carpeted and a car up the drive. We have an expectation that we should have everything and when we don't we think we have a recession. If you have a roof over your head and food on the table you are not in a recession. This little blip may teach us what is realy important. Quote Link to comment Share on other sites More sharing options...
diver21 Posted January 24, 2009 Report Share Posted January 24, 2009 Education about the dangers of debt need to be initiated by the Government in schools at a young age. 5 yr olds need to be taught how to save. I second this, when i was at primary school they had a banking programme that every week you would bring along 50cents and put it into your newly opened bank account. then your money goes away to the bank and you got a new line printed in your bank book saying that you got more money! i was dissapointed to know that the same school 10 years later isnt doing it anymore Quote Link to comment Share on other sites More sharing options...
Barrie Posted January 24, 2009 Report Share Posted January 24, 2009 I second this, when i was at primary school they had a banking programme that every week you would bring along 50cents and put it into your newly opened bank account. then your money goes away to the bank and you got a new line printed in your bank book saying that you got more money! i was dissapointed to know that the same school 10 years later isnt doing it anymore Why is everything always up to the Government? Tell me please why it isnt the responsibility of the parents? My eldest daughter is a new entrant primary school teacher and she is asked to tell kids to eat their dinner, clean up their room, dont go to the neibours... and heaps of stuff like that... what do parents do? Seems to me that some would belive that the only thing the parents should do is have the kids. One parent told my daughter that if she wanted the kids to go to school, my daughter should come around and get them why is it all back on the teachers? I do belive that teachers should be backing the parents up but sorry... their is no way its the teacher responsiblity Quote Link to comment Share on other sites More sharing options...
lmsmith Posted January 24, 2009 Report Share Posted January 24, 2009 Why is everything always up to the Government? Tell me please why it isnt the responsibility of the parents? My eldest daughter is a new entrant primary school teacher and she is asked to tell kids to eat their dinner, clean up their room, dont go to the neibours... and heaps of stuff like that... what do parents do? Seems to me that some would belive that the only thing the parents should do is have the kids. One parent told my daughter that if she wanted the kids to go to school, my daughter should come around and get them why is it all back on the teachers? I do belive that teachers should be backing the parents up but sorry... their is no way its the teacher responsiblity I'm not saying that teachers should get kids to save, and the saving scheme Diver is talking about was actually a Government thing, not a school thing too. My school did it as well. It's the Government's problem, because the Government has to clean up the mess that is left when parents fail. Obviously parent's aren't doing their job; if they did, kids would save, clean their rooms and send their kids to school. People are the product of their education, which is why we have a policy that kids MUST attend school until they are 16. Schools DO have a duty to teach kids things, because their job is to educate a child, not recite from a text book. If parents taught their kids things, then all kids would be like I was when I started school; I went knowing how to read and write, and was streets ahead of the other kids in the class. However, the reality is that historically, education hasn't been a priority of the New Zealand Government. Kids could leave school at 12, and things like sex education, relationship help, and saving skills were missed out on. Because of this, 25 years on, we have a new breed of imbecile parents, who don't teach their kids the basic skills they need to survive. Governments now need to make up for this, and do things to encourage those imbecile parents to send their kids to school, so that schools can teach kids the basic skills they have missed out on at home. Quote Link to comment Share on other sites More sharing options...
alanmin4304 Posted January 24, 2009 Report Share Posted January 24, 2009 In other words it is the same as it was 50 years ago when I went to school. There was and still is bad, good and very good parents and what you get is a pure accident of birth. It is the individuals responsibility to assess what they got given in life and to try and make up for the good things they missed out on or the bad things they can avoid passing on to the next generation if they choose to. It annoys me to hear politicians raving on about how they will make parents take responsibility for their kids. If your kid wags school you can't handcuff them to the classroom. You can pass on your values but if they don't accept them there is not a lot you can do. We create our own lives, not parents, teachers or politicians. Quote Link to comment Share on other sites More sharing options...
Luke* Posted January 24, 2009 Report Share Posted January 24, 2009 I went knowing how to read and write, and was streets ahead I think you meant "streaks" lol Alanmin is right.....it can only come down to the singularity that is personal accountability. The fundamental problem is a lot of humans, particularly teenagers, like to rebel, and, it is easier to be lazy than it is to be personally accountable. it's monkey see monkey do if you know what i mean. Quote Link to comment Share on other sites More sharing options...
Barrie Posted January 24, 2009 Report Share Posted January 24, 2009 I think that as a parent some of the best things you can teach your kids is For every action, there is and equal and oppersite reaction There is no such thing as a free ride Its easy to get ahead in life, YOU just need to do it as it wont just happen for you if you wait for someone else to do it never blame someone else Quote Link to comment Share on other sites More sharing options...
jude Posted January 24, 2009 Report Share Posted January 24, 2009 I think you meant "streaks" lol Alanmin is right.....it can only come down to the singularity that is personal accountability. The fundamental problem is a lot of humans, particularly teenagers, like to rebel, and, it is easier to be lazy than it is to be personally accountable. it's monkey see monkey do if you know what i mean. And lmsmith is right too - he meant Streets ahead. You can streak ahead of someone but then you end up several streets ahead of them :lol: :lol: Quote Link to comment Share on other sites More sharing options...
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