My wife and I purchased 2 iPads on credit a few years back. It took us a while to pay them off but finally we did. We were so happy to pay off a Citi Financial store card.
Then the new iPads came out and we wanted them! The old iPads worked just fine but we justified upgrading because the new iPads were lighter and we could get about $300 trade in refund for the old iPads.
Did we save to pay the rest? No, we again charged up the Citi Financial store card with a great "no interest" for 12 months deal. Well to pay it off in 12 months to avoid interest charges we thought we would only have to pay about $75 per month and this would have had little affect on our budget. After all the extras and warranty plans our payments would have to be about $150 per month and now that is really making things hard for us.
Getting the new toys and keeping up the the Jones has got to be one of the worst factors keeping our budget unbalanced.
Lesson:
Save up for all your toys to avoid the high interest and stress of owing money!
Have a great day!
Ian
