> Let’s say your credit-card interest rate is 24 percent. You buy a $2,000 couch that’s 50% off on Black Friday ($1,000) and take three months to pay it off. Even with about $40 in interest, you still paid less than full price. If you waited to save up, there’s no guarantee the couch would still be available or on sale. And in the meantime, you’d be sitting on the floor.
I have my opinions, but I’m curious—what do you all think?
Didn’t we all agree a while back that Charlotte’s financial takes were bad? This is the same person who once gave a guy $50k in a shoebox.
That said, we just bought two new pieces of furniture on Black Friday. Used credit cards, but we paid them off right away. It’s way too easy to convince yourself you’re saving money when you’re really just spending more.
@Ira
We actually did this, but planned for it. Our old couch was killing my back, and I found two recliners with heat, massage, and cup holders on sale. Used my credit card, got cashback, and paid it off immediately.
Ira said: @Reagan
That makes sense if you have the money. But some people see ‘sale’ and think it’s free money. A jacket? Sure. A couch? Different story.
Why spend so much on a jacket? You can get one cheap at a thrift store.
Furniture, though, is an investment. A cheap couch won’t last long.
@Reagan
I meant an impulse buy, like a jacket, not that I’d spend a ton. And yeah, quality furniture is worth it if you can afford it. No need to assume I’m clueless. Chill.
Some people are responsible with credit, but many aren’t. If you don’t have discipline, this logic leads to financial disaster.
I was a single mom for years. Sometimes you need to use a credit card for emergencies, like car repairs. But using one for holiday shopping? That’s just digging a hole for yourself. If you can’t afford it, don’t buy it.
