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What would you do?


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On 3/23/2023 at 1:14 PM, TnRiver46 said:

 

 

#thingstheydonttellyouinschool


 

Yeah, I have a degree in fine art, was going to be a high school art teacher. Started painting houses while in college and 38 years later I’m a retired commercial contractor!

 

I paid for the “experience “ of college,,,,,,pffffttttt.

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If you're made of money, go for it. But if you're buying on credit cards, you're not made of money.

 

Years ago someone told me "if you have to buy it on a credit card, it means you can't afford it." Took a long time before I understood it. IMHO the only value of a credit card is to have it for an emergency provided you pay off the balance in full every month.

 

Financing a large purchase such as a house or a car, even a boat, when going through a bank or a dealer with fixed terms is one thing, but financing on a credit card is another. Interest rates are ridiculous, and while the words "minimum payment due" sound exciting (minimum means you pay the least, right?), that's when you actually pay the most, because your payment only extends the loan; you pay someone additional money (on top of the loan) and actually it does absolutely nothing for you.

 

All that, and the fact that you're already dealing with student debt, and you're considering a boat that isn't even your most wanted, and considering doing it on credit cards...

 

Do not do it.

 

Find a better way. Maybe a used boat for cash, paid in full, just make sure you do your due diligence on things like the motor. Or consider a used hull and buy a new motor. Loads cheaper than buying the whole deal new on credit.

 

Bigger Boat people tease me about my simple 10 ft flat bottom jon boat with 3.5 hp Merc. But as all psychologists know, that behavior has nothing to do with the subject at hand, but comes from an underlying insecurity. The entire package cost me $2,060 brand new. It fits in the truck bed, no trailer. The motor rides in the back seat and is light enough to carry with one hand at load/launch time. Internal gas tank, no batteries. Had it in fresh water and salt, and I catch fish. Obviously apples/oranges compared to a bass boat and your needs may differ, just trying to give some other perspectives.

 

Sometimes less is more, and you can be proud of whatever you end up with in the short term, until you eventually get what you really want, but on your own terms. Looking forward to hearing what you end up with!

 

 

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Life hack:  don’t use credit cards to buy anything you can’t pay off in full when the bill comes in.  Most definitely not a luxury item.

 

I’m over 50 and have great credit.  I’ve been wanting a bass boat for a few years.  I could have gone out and bought a boat on payments anytime, but I hate paying interest so I started saving.  What I really wanted is a Bass Tracker 195 with all the newest and best trimmings.  What I got is a 2002 Bass Tracker 165 with a same era trolling motor and and a fish finder that will go in the garbage when I have the money to upgrade.  But, I bought what we now have with cash.  And now I keep saving so maybe in a few years if I want to sell what I have and step up, I can do that with cash as well.

 

So, my advice is save your money and watch for a deal on a good used boat.  Start with a basic jon with a 9.9 or even just a trolling motor if that’s what you can afford to pay cash for.  That gets you fishing and you can save for the next upgrade.

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Sometimes a loan is the best option, dictated by interest rate of course.

 

I bought a new truck when I retired, 72 month at 2.7 %.

Invested the cash at a guarantee 4.3% return over 72 months.

 

Having it and not spending it is another whole issue.

We have a family member who has a dozen rental properties, drives around in junk, goes nowhere....... basically living in poverty.

Get out and enjoy life.

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Credit cards are for emergencies only and then for some finnancial planning.  Get a good quality credit card with a lower interestvrate when you establish a good credit history.  My card guarentees my purchases and doubles the product warranty on bigger ticket items.  When I buy washers, stoves, new furniture etc I use my card.  If I have any issues with the product they get fixed right away or I can stop the payment on my CC.  I never have had any problems getting warranty service using my card. Auto repairs, appliance repairs doctor bills all use the card. My interest rate is 12.9% so if it carries for a couple months no big deal.  However, using it for large purchases like boats or cars....only if it can be paid

off in 6 months or less. You need to work hard to establish your finnancial credit and keep it good in order to get a card like this.  Routine credit cards are designed to trap people with high interest rates and long terms.  Great advise has been given on here, read it carefully and follow it carefully!!  If you can't pay off the majority each month or a max of 6 months, never use a CC...

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