Do you think it is okay to purchase something you cannot afford

Discussion in Loans started by novasparker • Dec 7, 2012.

  1. novasparker

    novasparkerActive Member

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    Do you think it is every okay to use a credit card for something that you really cannot afford? If you know that you can pay the credit off in a short time, would you? I think there can be some instances in which this might be okay but it would depend on the purchase and how soon you can pay it off.

    I struggle with this one a little because I think in some cases it's okay, but in others it most certainly is not. I think that when you buy a house, you can go into debt and pay for it. But other things I really think it's important to pay cash whenever you can. I think that it;s never ok to spend beyond your means when you are buying non-necessities and if you find that you have to use credit to pay for normal expenses then you are most likely in over your head and need to scale back.
     
  2. classicnyer

    classicnyerActive Member

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    There are situations in which it is not only okay, but necessary to buy something you can't afford. For example, it's going to be a rare occassion that you have all the money upfront to pay for your or your kids' college education. Also, people who are going into business are probably going to have to take out loans to cover their startup costs.

    I think it's just a matter of how important it is, and whether or not it will pay off in the long run.
     
  3. Parker

    ParkerWell-Known Member

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    It really depends on the situation. Once I used my credit card to purchase new tires for my car. I couldn't afford to buy four new tires at once, but I needed my car to get to work. I also used my credit card to help pay for my college education and school books.

    I believe credit cards can be very helpful for certain items that will eventually pay for themselves. I don't believe in using credit cards to pay for "luxury" items that won't pay for themselves or move me towards my goal.
     
  4. Pat

    PatWell-Known Member

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    Purchasing items you need on credit that can be paid back quickly in my opinion is okay. Must people get in trouble by using the credit cards to purchase items they don't really need at that time, just something they saw and want. If you can pay for the item within a reasonable time frame using credit is good. I look at how many hours I would have to work to pay for an item or what can I do without to off set the purchase if I don't have the money right now, can I not have lunch or coffee for so many days to get the money together, or walk instead of taking the bus.
     
  5. Neelofar1334

    Neelofar1334Active Member

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    I agree that it depends on the situation. I pay for most everything with a credit card or Paypal, but only because I know I have money sitting in my bank account that I can pay my credit card off with. If I don't have money to pay it off with, I won't make any purchases unless it's an absolute necessity. I don't have a lot of cash laying around because I shop online 90% of the time, and I like keeping all my money in my bank account because it gets frustrating when my money is in several different places.
     
  6. Sandra Piddock

    Sandra PiddockExpert

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    It's a question of whether you need something, or merely want it. For example, if you need a repair to the car to get you around, but you don't have the cash to pay for it, it's perfectly acceptable to get the repair done on credit.

    In my own case, I write for a living, so if my laptop died, I would have no hesitation in using my credit card to buy a new one, as I need it to work. I also want an Ipad, but I'll save up for that, because I can't justify buying that with the credit card.
     
  7. Ryder13

    Ryder13Active Member

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    If you pay by credit card, first thing you should do, if you have the option available and you are not paying it off immediately, is move the debt over to a line of credit, given you have one. The reason is simple, the rate is, dare I say always or at least almost always lower on a line of credit than a card.
    Anyway it is easy to get into a trap, and even happens to people who earn what I see as good money.
    Ryder13
     
  8. ChanellG

    ChanellGActive Member

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    I do not think it is okay to do this. I think that a lot of people buy way more stuff than they actually need and they can't really afford to do it. I don't think there is any case in which it is okay. If you can't afford it, you can't afford it.
     
  9. classicnyer

    classicnyerActive Member

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    I totally hear what you're saying about the status quo, but I do think exceptions need to be made. For example, a musician friend of mine a few years ago had his saxophone stolen. There was no way for him to save up the money for a new one because he couldn't make any money without his saxophone. It could be argued that he probably should have had an emergency fund on hand for that purpose, but he didn't. He had to charge it, and then work hard pay the debt off as quickly as he could.

    That's totally diffrerent from what people usually do, which is "Ooh, look a pretty piece of jewelry which I can't afford but need to have RIGHT NOW."
     
  10. Annetteb

    AnnettebActive Member

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    I don't think that is a good idea. I think that if you can't afford it you should wait until you can. That way you don't have to worry about having to pay back the credit card. You will have bought something with your own money.
     
  11. sbatz72

    sbatz72Member

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    This is a problem that I've had my entire adult life. Too much information I'm sure for some, but given the topic I really feel like I should have addressed this. It is only after filing for bankruptcy and then I'm trying to recuperate and restructure my finances and the way I see life and spend money.
     
  12. makemoney22

    makemoney22New Member

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    My personal opinion is, if you know for a 100% fact that you know you can pay it off by the next payment then it's OK to within 10% of what you make every month. Other than that, you should always live within your means. That would have to be the key factor, knowing your means, and living within them.
    And if you are going to use a credit card for something you cannot afford at the time, at least try and use it at establishments that gives reward point's to your credit card.