Post # 31
ktsteimel: I am not afraid of credit. I have a car loan, a mortgage, and my H has school loans. But I do think it is dumb as hell to take out a loan and basically pay more (hello interest rate) for a damn party then what was originally budgeted. And I don’t know about anyone else but I just don’t have an extra $580 (for a $7K loan) sitting around that I can use to pay towards a 12 month, 0% credit card bill.
Post # 33
mrsgutierrezbee: In this case, just take the loan (rather than gift) from dad and pay him back. At least the interest won’t be a problem, nor the timeline. I did the same when I stuck all my money into a CD (back when rates were decent) and then realized I needed a new car. Dads are very helpful sometimes I would have suggested that before but I figured with your mom’s health, parent money might be tight as well.
Post # 34
mrsgutierrezbee: Thanks 🙂
Can you take the money from your dad as a loan? That way you have time to pay it back/little to no interest?
Post # 35
ktsteimel: It’s not so much about being afraid of credit as it is about being smart about it. We use credit cards for everything in my house and then pay in full every month so that we earn cash back. Credit is an amazing tool if you know how to use it right (i.e. use it to benefit yourself with the rewards and never pay interest).
We currently have a 0% interest card that we used to buy some furniture. We have the cash to pay off the card sitting in our savings account. We could pay it off whenever we want. The reason we don’t is because we can cash flow the small payment every month (it’s on autopayment and we pay more than the stated minimum so it pays off a few months before the 0% expires) and then leave the cash to earn interest. If we didn’t get the 0% offer we would have just paid in full at the start since we didn’t buy more than we could afford.
I think the biggest problem people have is confusing the ability to come up with a monthly payment as actually being able to afford something.
Post # 36
Why would you want to start off your married life in debt?
Post # 37
I think people should only hold weddings they can afford comfortably, and never consider taking out a loan. This may mean geting married in a informal backyard wedding vs a huge hotel ballroom, or cutting guests.