Why I Financed Furniture

Ever since I was a child  I’ve wanted a hammock. We had multiple family friends with a “grown up swing”and I was constantly asking permission to use them. Unfortunately, we have never lived in a home that is conducive to getting a hammock.

A few years ago I came across a hanging chair. It’s a ball shaped chair that is suspended from it’s own stand. Basically a single person hammock that actually would work in my home. Every time I see one I want it.

This swinging chair definitely looks like summer heaven

On Saturday night I did a strange thing – I looked through a flyer for a home decor store. I’ve been avoiding these flyers like the plague since they only show me my wants at fantastic prices. I’ve found I won’t think of something for ages but I’ll see its photo and I’m right back to longing.

You may have guessed that I saw the chair. ML and I have a deal: we can only buy wants if we can pay cash.We chatted about the chair in  great detail and decided to check the budget. I had the funds!

I also noticed that there was a 12 month no interest finance plan. I have always thought these were silly. I’d just put the purchase on my credit card so I wouldn’t have too many people I owed money. I also felt that asking for financing meant that I had exhausted all other credit avenues.

This time I saw it differently. I could take the money out of my interest accruing savings account and own it straight away or I could use the company’s money, pay the credit line from my monthly miscellaneous budget, and leave my savings alone.

Here’s where it got interesting. I got approved for an  $11,000 store credit card…for a $400 item. The interest is insane and they’re fully expecting me to miss a payment. I should get the card late next week at which time I’ll set up monthly automatic payments so I don’t get dinged.

It was interesting to see my about face. One year ago I would have worried that I was doing this because I had no money. Now I’m doing it because I have the money but don’t want to part with it.

Have you done this before?

11 thoughts on “Why I Financed Furniture

  1. We’ve done the no interest deals before. But we always end up missing a payment or paying late at some point and get hit by a late fee of $30+ If you’re good with always making your payments on time you will come out ahead on those interest free deals.

    Liked by 1 person

  2. Be careful though because that higher credit line can be tempting. IF you pay it off each time you make a purchase you will be ok. Can you pay on the credit card at the store? If so, I suggest making the purchase to get whatever benefits there might be to that (ex: taking advantage of a special for using a card which may lower the price) but immediately after the purchase say you want to make a card payment and pay it off right then. That way there is no chance for error.

    Liked by 1 person

  3. In university when my husband and I were still dating he purchased a 46 inch screen T.V. and Playstation 2 (they were big back then) on the store credit card with the one year interest free promotion. He made the purchase and then came home and told me about it (and I was not impressed), but we managed to pay it off before the year and paid $0 interest, but it messed up with our plans big time. Now that we actually have money saved I am not opposed to it because I know we would discuss a game plan to paying it back. Similar to your situation.

    Liked by 1 person

  4. I’ve financed our appliances as we bought our home brand new and needed ten appliances all at once! (We have a rental on our property as well.) The first time around, we had purchased cheap, basic appliances and got 0% financing. Our original plan had been to finish up our basement and rent it out also so we would move the basic appliances down there, but we since decided against it and were stuck with these cheap appliances! One Boxing Day, Future Shop had AMAZING deals on appliances, so we sold the old ones and got new ones. I wish we had purchased the new appliances from the beginning but plans change. Our first washer took 1.5 hours per load (which is a challenge when you have roommates!); now we can do it in less than 30 minutes!

    Liked by 1 person

  5. I think when you have the space in your budget – when you’ve reached a comfort level with your skills and money – you are able to use other forms of financing to your advantage. As you say, you have the resources to pay for the item, but you can creatively finance it, and you have the discipline to make sure the payment plan works for you, not against you. Good on you!

    Liked by 1 person

  6. mdbyfire

    I have always thought that financing things was a scam and preferred to either have the money up front or skip the purchase. However, a no-interest plan is basically buying with someone else’s money! And as you pointed out, it leaves your savings intact (hopefully working for you and earning some interest) for another year. I would’ve probably done the same thing.

    Liked by 1 person

  7. Pingback: Furnishing – Saving Without Scrimping

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