Saw a buddy finance a $5,000 gaming setup at 24% APR. He called me jealous but I called it crazy.

So last month my friend Mark from college flexed this whole new gaming rig he bought on a store credit card. He was so proud of the monthly payment being only $180 but when I did the math the interest alone would add up to almost $3,500 over the term. I tried to tell him he could have saved up for 6 months and paid cash but he said I was just bitter I couldn't afford it. He's making minimum wage at a grocery store and still lives with his parents so where does he think this money is coming from? Has anyone else had a friend who just refuses to see how bad these store cards really are?

3 comments

3 Comments

king.eric26d ago

Jumped into a similar spot two years ago with a $2,800 TV and soundbar on one of those 0% interest store cards. Thought I was slick until I missed one payment and the interest shot back to like 27% on the whole original amount. Ended up paying over $3,400 for a setup I could have got for $2,200 if I just waited and saved. Your buddy's gonna feel real dumb when that $180 payment starts eating his whole paycheck and he's stuck with a gaming rig he can't even use because he can't afford the new games.

murphy.tessa26d ago

That $3,400 number really hits home for me because I used to be the person who thought store cards were a smart move. Had a Best Buy card for years and told myself I was being responsible with the 0% financing. Then I did the math on a laptop I bought and realized the interest worked out to about the same as yours if I was even a day late. Changed my whole view on it. Now I just set money aside in a separate account until I can pay cash. Saves the headache and the money.

emmam8926d ago

Also bought a "cheap" TV on credit once, still paying off that "deal" three years later.