Debt is BAD!

Who remembers all those furniture stores who sell their goods on Hp?? Remember " Bears furniture", " Joshua Doore ", "Russels", and " Rudicks" ? Years back they were the Furniture stores to visit and furnish your house, buying on credit and paying it off. Back in the days it was still expensive to buy on credit, but it came in so darn handy, especially when you need to furnish your apartment or home, but today, I don't no more Bears or Joshua Doore or Russels and Rudicks. Now all you find is "House and Home" and so many 2nd hand stores... There is still Geen & Richards, very expensive, I will never buy on credit for furniture or any appliance! Your best bet would be to save and when you can afford it, buy " Cash" and even demand a discount for cash, considering over the years how these stores coined it big time in HP and interest when we had to buy on credit.
 
terencej said:
Just looked at the good price of this Xbox1 controller at H&H. Then I noticed that you could buy it and pay it off. I nearly choked when I noticed you pay more then double for that product if you take it on those terms.

I was not planning on buying it on credit(I do not own an Xbox anyway, lol). But this add just gave me that little reminder of how bad debt is. Maybe it will help someone else. Stare at the numbers for a couple of seconds..... soak it all in. Then think about it :D

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It's actually much more than the indicated R1046.20. That's just the amount excluding the Initiation Fee and the Credit Life Insurance. The total amount you would have spent after the 30 months has ended will be R188.10+R196.20+(30*R34.63=1038.90)=R1423.20!!:sick:
 
Marius Flash said:
Who remembers all those furniture stores who sell their goods on Hp?? Remember " Bears furniture", " Joshua Doore ", "Russels", and " Rudicks" ? Years back they were the Furniture stores to visit and furnish your house, buying on credit and paying it off. Back in the days it was still expensive to buy on credit, but it came in so darn handy, especially when you need to furnish your apartment or home, but today, I don't no more Bears or Joshua Doore or Russels and Rudicks. Now all you find is "House and Home" and so many 2nd hand stores... There is still Geen & Richards, very expensive, I will never buy on credit for furniture or any appliance! Your best bet would be to save and when you can afford it, buy " Cash" and even demand a discount for cash, considering over the years how these stores coined it big time in HP and interest when we had to buy on credit.
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All those stores are still there, except for Rudicks, haven't heard of them, but your Price and Pride, Joshua Doore and Russels are still in business, .
 
geezer said:
It's actually much more than the indicated R1046.20. That's just the amount excluding the Initiation Fee and the Credit Life Insurance. The total amount you would have spent after the 30 months has ended will be R188.10+R196.20+(30*R34.63=1038.90)=R1423.20!!:sick:
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Don't forget the R49.90 deposit.
 
thechamp said:
All those stores are still there, except for Rudicks, haven't heard of them, but your Price and Pride, Joshua Doore and Russels are still in business, .
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Yeah, Rudicks are way back in the days in JHB, around the years 1975 - 1990, we had Bears and Josua Doore closing down here in East London..... Just remembered there is Bradlows that are still in the business. I doubt any existing Russels, Bears or Joshua Doore will be around in business for too much longer, considering the high interest rates they charge? People are much wiser today and think before they dive into HP contracts, and we can thank the Cellphone revolution for that .
 
Eti1 said:
Don't forget the R49.90 deposit.
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Oh yes, I forgot to add that as well. So, the initiation fee, insurance and deposit is only R64.80 short of the full price.......:twisted: I cannot believe that anyone would fall for this.
 
Cius said:
Looks about normal for debt. This is why I don't have any store cards, overdraught facility or anything similar. The only personal debt I believe is an any way a good idea is for the following:

Modest home
Modest car (preferably by cash)
Education
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I like how you think debt is a choice. For most people, it's not.
 
you get good debt and you get bad debt

I've already shown the benefits of good debt.
 
Deposit R 49.90
Initiation Fee: R 188.10
Credit Life Insurance R 196.20
First Installment R 34.63

So your initial payment is R 468.83 on a R 499 item?? You're R 30 away from paying the full amount cash.
 
Marius Flash said:
Who remembers all those furniture stores who sell their goods on Hp?? Remember " Bears furniture", " Joshua Doore ", "Russels", and " Rudicks" ? Years back they were the Furniture stores to visit and furnish your house, buying on credit and paying it off. Back in the days it was still expensive to buy on credit, but it came in so darn handy, especially when you need to furnish your apartment or home, but today, I don't no more Bears or Joshua Doore or Russels and Rudicks. Now all you find is "House and Home" and so many 2nd hand stores... There is still Geen & Richards, very expensive, I will never buy on credit for furniture or any appliance! Your best bet would be to save and when you can afford it, buy " Cash" and even demand a discount for cash, considering over the years how these stores coined it big time in HP and interest when we had to buy on credit.
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Did Morkels become part of Bradlows and Joshua Doore become part of Russels?
 
[XC] Oj101;19811274 said:
Deposit R 49.90
Initiation Fee: R 188.10
Credit Life Insurance R 196.20
First Installment R 34.63

So your initial payment is R 468.83 on a R 499 item?? You're R 30 away from paying the full amount cash.
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That credit life insurance doesn't make sense
 
I think the Credit Life Insurance is supposed to be a product that pays off your outstanding debt in case you lose the ability to do so if you become deceased while still owing money on your purchase
 
Anyone think it's a calculation applied to anything on website?

Anyone try to actually get it on credit?
 
saturnz said:
you get good debt and you get bad debt

I've already shown the benefits of good debt.
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There is a case for debt.

Debt is 'good' when the debt will be utilised to fund an asset that will generate more money than the debt + interest over the lifetime of the asset. E.g. A property company decides to build a shopping centre. It will generate an income over a 20 year period, but it seldom that the company will have that amount in cash to build it. So they take out a loan. This is after the company has done the market analysis, developed a financial model and a business case. The problem is the consumer debt is not this. Debt is used to maintain a lifestyle with goods that has no appreciating value e.g. Xbox one controller. These include clothing accounts, buying smartphones on credit and even vehicles. The credit business model is geared for this. And by adding additional costs to it, e.g. insurance, it cost the consumer more and it protects the credit lender. At the end, it is the consumer that pays, the company that makes the money and the shareholders that gets the dividends. On which side of the equation do you want to be? The side that gets the money (own assets) or the side that pays the money (own debt)?
 
Marius Flash said:
Yeah, Rudicks are way back in the days in JHB, around the years 1975 - 1990, we had Bears and Josua Doore closing down here in East London..... Just remembered there is Bradlows that are still in the business. I doubt any existing Russels, Bears or Joshua Doore will be around in business for too much longer, considering the high interest rates they charge? People are much wiser today and think before they dive into HP contracts, and we can thank the Cellphone revolution for that .
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Yeah cause people are paying 600pm for the latest cellphone so they don't have the money for furniture.
 
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