Reminds me of the Saturday Night Live skit...nachomc said:If you have to put your bike on a CC/financing to buy it, you can't afford it.
So just because someone buys a bike on credit they are automatically spending more than they make?texas said:My thinking is that you should always spend less then you make , not spend more and be in debt. Obviously for most people they have to borrow money for a house , so in my mind that doesn't really count.
The more money you make the easier this is to achieve, but long term people who make lots of money but spend more money then they make are worse off then people who don't make much money but manage to save.
I think that someone who borrows money to buy a nice bike is someone who spends more money then they make and will likely always be in debt, and will be in trouble when they can no longer work.
Quite simply, if there is 0 percent interest there's not reason NOT to use somebody else's money really. Obviously if you're paying interest it's a waste of your money. BUT if there's zero interest and you pay it off before it accrues any interest you are actually spending LESS money. Basically the 1500 dollars you were loaned is worth less at the end of 15 months or whatever the no-interest period is than it was worth when you initially purchased it, simply due to inflation. In other words your dollar is going further.denmikseb said:Why would anyone go into credit debt for a bike? Or a car, for that matter? I can see it for a house, since that really is the only way to afford one unless you are rich, or you win the Lotto. Save up a couple grand, or whatever it costs, then pay cash. After 40+ years of credit cards and buying on credit, I have finally paid off all credit debt and no longer have the unhealthy stress of having to work hard, then give most of my money to someone else. If I can't pay cash for it, I don't need it until I get the cash. Most won't listen, but I wish I did this 20 years ago, I am now 58 and haven't had to work since I was 55. I have a Felt and two Treks that I paid cash for.