1. I still utilize 0 percent from time to time, but more on interest arbitrage on something I was going to buy in cash anyway. For me the decider is largely if I feel I need it now and I still feel the same way three months from now. Then I go buy it because I clearly do value it. In the interim I consider things like the value of it to me, the price of alternatives, and if I can afford he opportunity cost. Honestly in the last five or so years I’ve rarely found a single thi I’ve truly wanted I couldn’t afford. Instead I’ve found many things I didn’t really value when I got down to it, I could get a just as good alternative for less, or ultimately that value wasn’t worth the cost of other things I had to forgo in order to buy.

    • Andrew

      Hi FullTimeFinance,

      I think you have a really good point about finding the real value in a purchase. When I say no, or wait a while to decide on a purchase, I’m out of the heat of the moment of the purchase. Most times I find I will make a better decision at that point.

      The issue with credit purchasing, for me at least, was the continuous cycle. If I had the credit available at zero percent, I was more focused on the good deal I was getting, less on the real need or value of the product.

      You would think experienced shoppers would be able to break that cycle, but as a former salesperson I can tell you that is not the case! People of all ages and income can end up buying things they want but don’t need when zero interest is involved.

      It’s no necessarily bad to buy on zero interest, of course. If a purchase is a small enough percentage of your net worth then it really doesn’t matter how you buy it.

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