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Barclays backing out of finance

So you're upset that a total stranger on the internet presumed something about your finances you say? Did you take a look at your very own post where you, a total stranger on the Internet, presumed something about somebody's finances?


H3rman said:
A mortgage is a bit different to your normal loans that people use to go on holidays or buy new phones/watches, which is what I was getting at. I just don't understand people who put things like Apple watches on finance. Even when I got my iPhone contract I paid a huge sum of money for the phone up front and have a lower monthly fee during my contract duration.



I could have paid half (or less) up front and more each month, but it worked out that it would cost me an extra £200 over the 2 year contract period. I also looked at buying the phone outright and then getting a sim only deal, but the one I am on now was the best value. However you get some people who want the phone for £100, then pay £60 a month for 2 years and it ends up costing them far more in the long run. That's what I don't agree with, but that's just me. Others can do what they like with their finances.



Also, how on earth do you know that I havn't bought my house outright? You know nothing about me and how much I earn.
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Ok this threads gone a bit OTT now - just wanted to share what apple told me haha.

Also people moaning we are in debt or spending more - people are buying the watch online over retail, they are paying more out than I am with finance so meh.
 
People seem to think that the mere use of financing or "credit" automatically are bad with money and aren't living within their means. It might surprise those people that Apple "finances" things and currently holds debt. WHAT?! They have BILLIONS in the bank. Sure, but the billions are liquid (or overseas) and they much rather have it for some fancy cash purchase and make the payments on the debt.

The point is, debt can be used strategically, and if understood and used properly it says more about a persons financial smarts than a person that pays for everything in "cash."

Sure, there are lots of people that misuse credit, I worked in retail and saw many people get stuck in the "financing" loop with ridiculous penalty rates. Where as I used the exact same card, financed thousands effectively "smoothing out" my purchases that I had the money for, and never paid a dime over the original cost. As a matter of fact I got hundreds back from the financing company in the form of rewards, and now have wonderful (800+) credit.

Anytime I hear a person demean me for using credit and financing for just about everything it only says to me they don't have the self control and ability to properly manage their money and credit, or simply can't get credit. Get off your high horse.
 
Wow, people on this site really love the opportunity to hint about how much money they make. Extremely tacky.
 
Arran said:
Maybe too many people were using Barclays financing to flip watches? That's edging into small-business financing. The non-repayment risk in that is higher than a regular consumer who's simply buying a watch for themselves. Because entrepreneurs take risks.

Example: a watch-flipper maxing out their credit card to buy a 10k edition in the hopes of selling it for 15k. Some possible outcomes:
  • They sell it and pay off the loan. The bank loses anticipated future interest.
  • They sell it but don't pay back the loan. Now the consumer has a free cash advance. Banks don't like that. Furthermore, they might lose the money in follow-on flipping activities. The bank then has an unsecured loan to deal with.
  • They return it to Apple and pay back the loan. Projected future interest for the bank vaporizes. Not sure what happens to the fees they charge the retailer. In any case, it's a complete waste of time for the bank.
  • They keep it past the return window hoping to sell, but the secondhand watch market collapses. Again, the bank now has a loan that the consumer can't repay. Sound familiar?
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This is the rumor I've heard. :apple:
 
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