FNB offer with cyclelab/apple

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bar1

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Hi,

iStore Support

www.myistore.co.za www.myistore.co.za

not too sure i understand the offer and in the past i was looking to get a new bike and then decided to pay cash because the offer is a bit confusing.

seems like i am paying the FULL amount AND paying monthly installments?
not sure i fully understand this deal.
 
bar1 said:
Hi,

iStore Support

www.myistore.co.za www.myistore.co.za

not too sure i understand the offer and in the past i was looking to get a new bike and then decided to pay cash because the offer is a bit confusing.

seems like i am paying the FULL amount AND paying monthly installments?
not sure i fully understand this deal.
Click to expand...
It's a budget transaction on your credit at a lower rate so you pay prime instead of whatever your facility rate is.
 
CranialBlaze said:
It's a budget transaction on your credit at a lower rate so you pay prime instead of whatever your facility rate is.
Click to expand...
Yeah,I get it... But if I pay the full amount anyways (move to budget)...I can just pay cash?
I assume if for example my monthly payment is R1000 for example this amount will be available for me to use on my budget account?
 
bar1 said:
Yeah,I get it... But if I pay the full amount anyways (move to budget)...I can just pay cash?
I assume if for example my monthly payment is R1000 for example this amount will be available for me to use on my budget account?
Click to expand...
Well if you have the cash then why would you want to pay more?
 
I thought , when it moves to the budget facility the cash will become available again. But I was advised it will not be available for me to use
 
So I paid R20000 for an iPad and I have installments of R 1100..?
 
I think what's confusing OP is that his total facility does not increase before he makes his purchase. So his credit available will take an immediate hit.
 
bar1 said:
I thought , when it moves to the budget facility the cash will become available again. But I was advised it will not be available for me to use
Click to expand...
It's not cash its credit. So it starts with - 20k on strait, then +20k on strait and - 20k on budget.

Installment should be a little over R600
 
themba990 said:
I think what's confusing OP is that his total facility does not increase before he makes his purchase. So his credit available will take an immediate hit.
Click to expand...
What you saying makes sense, but it also make no sense to have such an assumption. Your spending your own alloted debt allocation, not someone else's.
 
bar1 said:
I thought , when it moves to the budget facility the cash will become available again. But I was advised it will not be available for me to use
Click to expand...

What cash? There is no cash it’s all credit.
 
ok.
First of all i have an overdraft not sure if it makes a difference....

Lets say that i have R20000 overdraft, and i used it all on this deal, R1080 for 18 month.

Does that mean that after 18 month my overdraft and the ipad will be paid off?
makes a more sense and maybe not such a bad idea as i want to reduce my overdraft.
 
bar1 said:
ok.
First of all i have an overdraft not sure if it makes a difference....

Lets say that i have R20000 overdraft, and i used it all on this deal, R1080 for 18 month.

Does that mean that after 18 month my overdraft and the ipad will be paid off?
makes a more sense and maybe not such a bad idea as i want to reduce my overdraft.
Click to expand...
Overdraft does not work that way, overdraft is a negative on your account, so if u used 20k sure you'd be in a negative, then your salary comes in and your back in a positive, monthly expenses go on and your back in after draft. Rinse and repeat until such time as you have truly "paid" it off.

Technically speaking you'd pay it off every month and then simply reenter debt as the month goes on.

Unlike a credit card and overdraft a rues interest from the moment you enter it, it gets calculated nightly, credit cards do it monthly, so you'd not be paying of R1080 every months, you'd be in a perpetual cycling of entering and leaving a quantative debt and end up paying exponentially more interest than you would on a credit card or even taking up this deal.

How is it that you appear to have soo much access to debt and have zero understanding of how any of it works?
Overdraft is a safety net, not a credit facility, it's expensive to use and is solely for desperate times, it's the thing you use when your options are overdraft or sell your kidney on the blank market.
 
CranialBlaze said:
Overdraft does not work that way, overdraft is a negative on your account, so if u used 20k sure you'd be in a negative, then your salary comes in and your back in a positive, monthly expenses go on and your back in after draft. Rinse and repeat until such time as you have truly "paid" it off.

Technically speaking you'd pay it off every month and then simply reenter debt as the month goes on.

Unlike a credit card and overdraft a rues interest from the moment you enter it, it gets calculated nightly, credit cards do it monthly, so you'd not be paying of R1080 every months, you'd be in a perpetual cycling of entering and leaving a quantative debt and end up paying exponentially more interest than you would on a credit card or even taking up this deal.

How is it that you appear to have soo much access to debt and have zero understanding of how any of it works?
Overdraft is a safety net, not a credit facility, it's expensive to use and is solely for desperate times, it's the thing you use when your options are overdraft or sell your kidney on the blank market.
Click to expand...
Shew.... Ok this went off topic very quickly
And you are wrong about my account and about the FNB deal

I have 30 days interest free, also don't see a problem in paying some interest of required...(selling a kidney.. seriously?)

and the fnb offer is very clear it 7.75% interest every month, R1180 a month.

Back to topic.... Got my answers, thanks
 
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bar1 said:
Shew.... Ok this went off topic very quickly
And you are wrong about my account and about the FNB deal

I have 30 days interest free, also don't see a problem in paying some interest of required...(selling a kidney.. seriously?)

and the fnb offer is very clear it 7.75% interest every month, R1180 a month.

Back to topic.... Got my answers, thanks
Click to expand...
Lol, overdraft has no interest free period, it has the highest potential interest so its the furthest thing from "some".

Credit cards are 55 days interest free.

The fnb deal is 7.75 per annum, not per month. The interest is manual, the installments are monthly.

But hey, your money...
 
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Wow, 7.75% isn't bad. Even if you had the money to buy it outright you could make a tiny amount of margin by leaving your money at 9% in a savings account and paying installments.

If you're carrying this balance on your budget facility, do you still get 55 days interest free on your straight facility?
 
3WA said:
Wow, 7.75% isn't bad. Even if you had the money to buy it outright you could make a tiny amount of margin by leaving your money at 9% in a savings account and paying installments.

If you're carrying this balance on your budget facility, do you still get 55 days interest free on your straight facility?
Click to expand...
The 55 days is based on purchases so once an item is moved from strait to budget they actually move the physical transaction, so it's no longer a strait transaction.

So it will have no bearing nor be impacted by an interest grace period.
 
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