Saturday, February 14, 2009

What happened to putting down a deposit for something you intend to buy , if you couldn39;t afford a deposit for

a new car , television etc then it is obvious you couldnt pay the full price , in my own simple way of thinking has this free credit nothing to pay for 20 years help cause some of the financial trouble we are now in ? .
      Answer1:Yes. The old "layaway" concept largely vanished as retailers and lenders offered easy "buy it now" credit.
      Answer2:When I see those kinds of deals with no interest for 2 years, I get offended. Why would I want to go into debt to buy a bunch of overpriced junk that I dont need. Although layaway is better than using credit and having an interest rate, it still involves the same mentality. (Nowadays, by the time youd pay an item off--for example an HDTV--youll be getting last years model which either has fewer features or costs more than this years.) Whether it was back then or now, you can still open a bank account and save money. Otherwise its that I cant save up money mentality; I need to be making payments. Basically, I think layaway paved the way for these "free" credit deals.

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