My sil and I had a discussion on this very same subject one time. She buys EVERYTHING through these people and I cannot get her to understand that if you do the math you are paying 300% higher for the item than if you save up and pay for it.
At that time she needed a washer and dryer. She had access to her daughter’s next door and had been using that. I suggested instead of running out to RAC and paying three times the price she continue to use her daughter’s units while she put that $29.99 back in a jar or something to save up for a used washer and dryer (which often is what you are getting from RAC—she even admitted that) and in the mean time watch Craig’s list for a used unit, CHEAP!
You would have thought I was asking her to kill her child! She just went bonkers. NO she needed the unit now and they would deliver it tomorrow. I asked her what the price of the units would be and she told me, I nearly fell over in a faint. First of all their list price was higher than any retail store for new units, for a used unit. Then when I showed her the math on the “easy payments” totaled more than that list price, plus there would be the “buy it now price” at the end of the payment period. All in all it worked out to be a 300% mark up at new unit price for a used unit.
She wouldn’t listen. Even when I showed her on Craig’s list much nicer models people had listed for less than half the original price. It was sad. Her excuse was she couldn’t keep using her daughter’s machines for a month or so while she saved up because it was “inconvenient” to carry her laundry next door once a week. She also told me I didn’t know what it was like to be poor—don’t even get me started on that one. That they were the only place she could buy on time because they were so poor. My tongue was so bloody that day from biting it. Just remember she and dh had the same parents and had all the same opportunities in life. She came so close to getting my “choices” speech that day. But I knew she wouldn’t listen.
She has seriously furnished her entire house through these people, including computers, appliances, riding lawn mowers and everything else. Then wonders why she has no money.
..I live in Jacksonville and our players are known for drug/DUI, assult, domestic violence arrests, a few have filed bankruptcy and they are not very community friendly. Only 1 or 2 have actually stayed here and contributed to the community.We joke about being Luddites at our house – even though my husband works on a computer all day. He says the last thing he wants to do when he gets home is get on one. We have been getting more and more high tech around here – but I am trying to filter all the outside crap (my view anyway) that tries to sneak into my life (ie. TV, news, advertising, websites…)
Funny you should bring this up. I don’t know what ds going yesterday for certain. But he announced he was ready to “disconnect” from the world and go back to writing, drawing, reading and walking on the farm for entertainment. He even mused about selling all “toys” in the house. Now this is a young man who is an electronics junkie. Something really wound him up for certain. Jan who knows he’ll calm down and tell her eventually in OK
you’re using your brain. RAC and folks like them are very much hoping that most folks won’t bother with making so much effort. And just do what the hunky ex-football players tell them to do. After all, aren’t hunky ex-football players our best possible advisors for personal finance?
Sorry if that sounds cranky. I’m going through Quicken and setting up monthly budgets based on our spending this year, and let’s just say that I have a new level of respect, awareness and (honestly) disgust for how much money flies out the door of this household. Some days feels like we’re doing good and some days, not so much. Today is one of those latter category days, darnit. And yes, I’ll confess to buying two Powerball tickets last night. I wasn’t one of the two winners. So I’ll keep on working in Quicken, and try not to get even more annoyed.
But here’s a very bright spot – we have approx $25K left in all debt other than the house. That’s the remainders of my credit card, our IRS bill, and one more credit card which is probably not even on the books anymore but I want to pay back that debt. A big enough total, to be sure. But while setting up Quicken this morning, I saw that our mortgage is even lower than I expected. I was figuring $75K and it’s actually only $69K. A few years ago that number would have seemed un-reachable. Now, that seems very do-able. We’ll hopefully finish off the consumer debt in 2013, and then our guns will be aimed at that mortgage. If we do nothing, we’ll pay it off anyway in 2018. But with the snowball, wow we could have it by our house’s 100th birthday – 2015. If I stand on my tippie-toes, I can actually look far enough down the DR road to see that day when we won’t have debt. Any debt. Wow, that’s quite the attractive landscape, stretching out behind the hills we’re currently climbing.