financing a book

[Hattig]

Back in January 1998 I bought a PC for use at university. I was 19, and back then computers weren't cheap. As a student I found it hard to pay off the loan, and it was a major source of stress at some times. In retrospect I shouldn't have bought that computer, I should have investigated building my own. However a new iBook is a lot cheaper than that old PC was, and I could have afforded one.

Don't get credit unless you can afford to pay it off. I have a credit card for one reason - to give me a method of getting money at times when money gets low or for an emergency (well, I currently have two, I'm transferring the balance from one to a new one because of the 9 months no interest on transfers, after an aforementioned money-getting-low situation where I had to pay a couple of months worth of mortgage by card). I'll have it paid off well before the end of the 9 months.

So - do you have any income? Assume you spend $1000 via Amazon for their 12 months no interest option; that means you realistically need $100 a month - $25 a week - to pay it off. A couple of nights a week flipping burgers will get you that and more.

 

[Hattig]

Basically it is a checking acct.
However it tends to have fees if you write checks (you can usually write some, but very few without incurring a fee) but, It pays a small interest rate of appreciation on your balance.

Surely you get interest on your instant access account? I get 3% gross on my instant access account.

I must write 2 cheques a year, if that, but I've never heard of charges for non-business accounts for writing them! It must be different in the US.

 

[aboutthat]

Never finance a laptop. Know why? Say you drop it or it gets stolen. Do you know how much it will suck to have to keep paying it off even if you do not have it anymore?

Good point. I'm not too sure about credit cards, but there are some check cards that will offer automatic protection from theft/damage on virtually everything purchased with said card. Usually there are limits (the one I'm looking at is $500) so it might not work for the iBook purchase, but keep it in mind for accessories, semi-large purchases. Just reinforces that you gotta pick the right payment for everything and think it through...

I am a college student and I did finance my 15" Powerbook. However, my first payment was at least half the cost of everything and made larger-than-necessary payments (usually aroun $100 per month) to polish off the balance in a year. Advantages: I could order a machine that I know will fit my needs (eliminating the need for upgrades down the line when one's financial outlook might not allow for such things) and that I'm confident will last me a good long while. So, by paying a little more and financing, I feel better in knowing that I've made a good investment in my purchase.

With regards to credit cards for younger people (such as myself), I think it's important to start building credit while you still have the safety net of parentals around. Rather than waiting until you're out on your own in the 'real world' to begin to learn how to use credit responsibly, I think it's a better idea to learn and have a solid base that will make things easier when you cut the strings. Building good credit now affords you lower interest rates and such that free up money with which you can make payments/investments/extravagant Apple purchases (couldn't resist ), which makes finances just a bit easier down the line. Else it's all a downward spiral.

Wow. That was a small manifesto, sorry all

 

[phreakout13]

I financed my PowerBook through my father. I gave him a $500 (25%) down payment, and now I'm still paying of the rest every month. It's working out great for me because it's more flexible. Maybe you could work out a deal with your parents...

 

[IllTakeAnApple]

well i just got back from the bank and they told me i could not yet get my car transferred from my under my dad's name to my account. However they said in 6 months if i make payments from my account to pay off the loans i can eventually get the loan under my name. Even better news than that i got my first credit card while i was there. They got me setup with a platinum card for students. It allows me to have a limit of $500, so i dont get into to much trouble, and i got a lower interest rate than the banker thought i could get....no credit at all and i got a pretty good rate of 9.75%. She told me that making any purchase at least at a rate of once a month and paying it off right away will help me build my credit. Im thinking i might just use my card for buying gas since something like that can easily be paid off compared to say a $500 stereo.The gold card would have let me get cash back (not sure entirely how that works) but the platinum card will give me a chance to get gifts (ex: plane tickets) still not sure how this works either but ill be having a discussion with my parents tonight about it when i get home! After all my dad jumped in and told me i should get the platinum card since that is what he has been using.

"aboutthat" how much did the 15" powerbook cost you, in relation to the regular price, over the long run?

 

[dmw007]

She told me that making any purchase at least at a rate of once a month and paying it off right away will help me build my credit. Im thinking i might just use my card for buying gas since something like that can easily be paid off compared to say a $500 stereo.

Good advice. Although carrying a small balance that you pay off over time will also help you build up your credit - shows that you can contract a debt and pay it back.

 

[aboutthat]

"aboutthat" how much did the 15" powerbook cost you, in relation to the regular price, over the long run?

I'm actually not sure the exact amount but I can at least give you an idea of the numbers. I financed about $1200 (half of the PB and iPod) with an APR of around 10% if I recall (had my parents get the lower APR under their name, then just paid the bill meself). So, with 10% on $1200 for one year, that makes for $120 in extra finance charges. Not a whole heck of a lot in my book, but chaqu'un a son gout! (to each his own, hehe!)

 

[bodeh6]

Only buy something if you have the cash to back it up. I use credit cards often but have never paid a single cent on interest or fees. When I buy my Powerbook, I will put it on credit card and pay it off as soon as it comes.
Interest/fees on credit cards are for fools.