Vendors Offering Financing - Do You Support It?

[K7BMG]

If they offer something people will come.
In the end, however this is not about the vendor, bank, price gouging evil corporate regime.

It is the individuals PERSONAL responsibility to handle there own stuff and be held accountable for their own decisions and actions.

 

[NASOTANG87]

Terrible idea. The price of corals is already astronomically high. This will just encourage further gouging.

 

[reefcleaners Verified Sponsor]

All roads in personal finances lead back to cash flow. If one has a well thought out budget that is based on solid rules of finance, then if a hobby purchase fits within their discretionary spending, they is no problem. Obviously interest rates affect this, but if the monthly payments are within the budget, then if you want to pay extra (interests) for enjoyment now, then fine.

Store financing comes with some traps. Often the credit line is the amount of the purchase. This limits (or close to limits) out the card and that can drag down your credit score (look up Credit Utilization Rate how this works with FICO). As a general rule, never carry a balance more than 30% of your credit line.

Also, before you ever take out a credit line, it's important that you totally understand the fees. These are usually buried in the fine print. For folks with less than good credit scores, the lines for which the qualify have buried fees that work out to 30% of the credit line whether or not you use the card. These are often split into both annual and monthly fees and they can also include automatic increased in the credit line with corresponding increase in fess.

Most people do not understand the nuances of credit and the banks rely on this to get their business. No doubt it's why americans carry nearly $1trillion in credit card debt while most have little to no savings.

When I was in banking, I used to quip "never finance a depreciating asset."

Did anyone end up buying a car with cash after? My dad gave me the same talk when I was 16. I drive old cars, but it is freeing not to have the payment.

My bank gives the opposite advice. They are very rich, I knew they were up to something.

 

[Larz_1]

While I don’t think it is a good idea - others can do what they like.

I think it says more about how expensive this hobby has become.
If the items you need require financing to afford .... maybe things have gotten a bit out of hand.

Now, you could always look for bargains, buy used or get the old version of that light instead of the latest/greatest.
That is what I choose to do in order to keep costs down.

 

[troublemaker]

With anything that I finance, I try to gauge wether it makes more sense to use somebody else’s money vs. my own. I don’t know what vendors are offering as I have never looked into it, but I use this method for anything I buy.

 

[K7BMG]

Terrible idea. The price of corals is already astronomically high. This will just encourage further gouging.

Funny and sad, but I both agree and disagree with you.

 

[pharazon]

When I was in banking, I used to quip "never finance a depreciating asset."

Were you making this quip to clients? Did you not finance automobiles, or offer unsecured loans/lines of credit?

 

[User1]

It is a personal choice and has nothing to do with the hobby or business offering products. What I believe the OP is missing is at the end of the day the hobbyist is paying be it cash, financing, or credit card. Someone has to pay. So let them shop around and see what works best for them.

Believe it or not there are diligent people that can manage their credit and zero % interest rates among others.

 

[Brian_68]

If it is zero interest that is one thing but it is no wonder personal debt is at its highest, you can finance anything that many cannot afford outright.

 

[User1]

If it is zero interest that is one thing but it is no wonder personal debt is at its highest, you can finance anything that many cannot afford outright.

Yes, you can. However, the onus is on the human. The buyer. This hobby, or any other, isn't putting a weapon to your head and saying DO THIS OR ELSE. No one is forcing you to buy a $600.00 frag the size of a bean.

You are either responsible, or not. If you are not, well, life becomes difficult. It is all about choices. Not to be blunt...

Edit: people make mistakes. Hopefully we learn from them.

 

[PelfsReef]

Look...Its your money!!! You can do whatever you want.

 

[PelfsReef]

I think financing is a good thing for the hobby. Everyone can say if you cannot afford the hobby you shouldn't do it. In that case there is so many people in the world who wouldn't be able to have an aquarium. Most of the initial spending is a high investment after that it becomes very minimal. Seeing how many say people using the option to start their aquarium shouldn't do it is sad. We all have out opinions about things but thinking that people who are not as well off as you don't deserve a hobby is pretty ******. Everyone wants to buy a 3000$ aquarium and stand. Then add another 5000$ in equipment then another 2000$ in rocks and sand and not bat an eye. But alot of people cannot. And to say that they don't deserve the same past time as you or same enjoyment because they are not rich enough. SMH

I agree 110% percent

 

[madweazl]

People finance everything, why not this? Do what you like, ya cant take it with you.

 

[vessxpress1]

It depends on what the individual has goin on. Financing a few things doesn't really hurt anybody. It's basically a forced savings especially if it's 0% anyway. You just don't want to see people try to finance 10, 20, or more different things all at once. I've seen the worst of the worst. Most would never believe how some people live. Think rent furniture, sell some of the rented furniture for cash, the rest gets repoed and they're on the run to write bad checks in the next city and sign up for payday loans they have no intention to pay back.
Most people aren't this bad but this is why credit cards charge astronomical rates.

 

[reefiniteasy]

I’m just curious. Has anyone who thinks “you don’t belong in the hobby if you can’t afford it” financed a college education? Because you don’t have to have it. Or to say a car/house is ok because it’s needed? It’s not. Why does anyone care what anyone else does! I bet people who don’t think financing is okay are also tang police, always looking at what someone else is doing and have to think they’re better in some way. There are some serious elitist views among people in this hobby.

I got into this hobby for free. I was blessed with tons of donations from companies for my classroom. That helped get over the initial hump, however, I think I’ve spent close to $2,000 on supplies at this point. Can’t really afford anything more than 20 gallons. However I have made so many connections along the way and that has helped tremendously. I agree once you’re in the door, it’s easier to maintain financially. Will I ever have a large tank, probably not! But if I do choose to upgrade, how I go about doing that is no one’s business but mine.... well, except my wife, she is the voice of reason.

 

[Brian_68]

I’m just curious. Has anyone who thinks “you don’t belong in the hobby if you can’t afford it” financed a college education? Because you don’t have to have it. Or to say a car/house is ok because it’s needed? It’s not. Why does anyone care what anyone else does! I bet people who don’t think financing is okay are also tang police, always looking at what someone else is doing and have to think they’re better in some way. There are some serious elitist views among people in this hobby.

I got into this hobby for free. I was blessed with tons of donations from companies for my classroom. That helped get over the initial hump, however, I think I’ve spent close to $2,000 on supplies at this point. Can’t really afford anything more than 20 gallons. However I have made so many connections along the way and that has helped tremendously. I agree once you’re in the door, it’s easier to maintain financially. Will I ever have a large tank, probably not! But if I do choose to upgrade, how I go about doing that is no one’s business but mine.... well, except my wife, she is the voice of reason.

In lots of cases people take on tons of debt like college, new cars, big house that they really can't afford, then want to walk away from it when they get into trouble. Someone pays for that, the banks will charge their other customers in one form or another. They did not come out with an 84 month new car loan geared to people that have the money. Sure if you can afford it though, go for it.

 

[Robcope]

I think it's fine, so long as you can afford it. I financed my waterbox and kept my money in savings. I financed at 0 percent and paid it off over six months.

I intend to buy a larger tank with in the next year and will finance it as well. Prices are insane. I am lucky, as I can afford it. Most can't. Just wish prices were more reasonable.

 

[Steelheader09]

I support it if they don't gouge people. Recently got a quote from water box. Half down, 24 monthly payments at 29.9% interest!!! Local credit union, no money down, 10% interest, 5 yr repayment.
As fo those saying you shouldn't finance something you can't afford, if this is your passion. Then go for it. People finance vehicles, recrational equipment etc everyday. I for one plan on financing a large aquarium when we decide as a family we can afford the monthly payment.

 

[WisconsinReefing]

I don’t think it’s wise to finance any hobby items. House, car sure you need those. Maybe even a new bed. Beyond that.. Nope

Disagree completely. I’ve been a banker for 20 years. If it’s a larger purchase that you can finance at 0 percent. And you can be disciplined and never miss a payment, and ensure that the balance is paid in full by the end of the interest free period it’s a fantastic option

 

[Joekovar]

This is funnier than when bankers thought subprime mortgages were a good investment!