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0 sats \ 20 replies \ @OT 19 Nov \ on: How Americans Take Advantage of 'Buy Now, Pay Later' charts_and_numbers
I see this everywhere too.
I just don't understand it. If you don't have the money to pay for it, wait until you do. It's so simple.
What if you have the money, but decide to "spread-the-pain" over a 6-month period for $12 bucks more, instead of paying the full amount of, say, $850,00 at once?
An extra 10 - 15 bucks makes you stay way more liquid.
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I've bought my sewing machine this way, and I sleep well.
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Its not for me. I might be too old.
Over the long run, it costs you more. Couldn't you wait another week or month for the new sewing machine?
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I could, but life isn't always manageable in terms of costs; Sometimes you'll have to bite off the tip, and it's nice to be able to do so, while still maintaining enough liquidity in the accounts for other unforseen expenses- yes, you pay a few bucks more, but that's absolutely worth it to me.
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I think for me it just means you don't have any savings.
But yeah, some people just want the thing and don't mind paying more to have it right now.
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Like talking to a brick wall...
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Say I have €5000,00 in my bank account, and want to buy some things, say, €2000,00 worth.
Now I can either pay direct and thereby almost half my liquidity, or I can pay in 3,- 6,- 12,- 24 month installments, pay 12% p.a and stay liquid.
Yes, I pay more in the long run, but have a bigger buffer in the meanwhile, while also buying what I want / need when I need it.
Get it?
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There are perfectly valid uses for this practice. It's not like I paid for my house in full.
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