Can't decide! Pay off sofa monthly or all in one go?!

martin1018

Have recently purchased two new sofas from SCS.
We have the money (£2500) safely sitting in premium bonds in the hope that we may win something. Even if we don't win, it will be fun waiting for the draw each month.
In October next year the money will come out to pay off the cost in one go.
So we get our new sofas and the chance to win some money to pay for it!

tr3mor

Hmm, surely DFS can afford to give these deals by inflating their prices in the first place. I reckon you may have been better off somewhere else. Don't know where though!

Bear_family

You seem quite money savvy otherwise you wouldn't be worrying about having a buffer of a few k in case of redundancy etc. I'd pay the sofas off all in one go, although there's no interest added on the monthly payment method, you never know if your circumstances are going to change and you won't be able to afford an extra £40 a month. There's nothing worse than still paying for something you're already using and by the time you've paid it off it's already started to look shabby. It's one less debt to worry about as well.

Merry Christmas

OverlandLandy

tr3mor wrote:

Hmm, surely DFS can afford to give these deals by inflating their prices in the first place. I reckon you may have been better off somewhere else. Don't know where though!

I bought a new suite a few year back...saved almost £400 vs the already 'discounted price' of £999! I found the 'real manufacturer' by looking at the sales persons 'sales book'....They should know how to hang on to it really!

Anyway - worth a try - i find that if you ask for lots of detail...size, fabric etc...they need to consult their 'bible'...once they have it in their hand....just take it out of their hands...smile...say thanks....clock the info you need...then hand it back to them... if they let the book out of their hands...I bet you any money the wont feel comfortable asking you for it back!:o

bbruce

kankan wrote:

Thanks for all your messages. I think we'll pay it off in full early. I've checked and no penalty charges for doing so.

Thanks

Frankly, I'm amazed you asked for advice, got some really clever suggestions then decided to ignore them all and seemed pleased you wouldn't be penalised for paying early. You've effectively penalised yourself!
If you can control your spending, it's a no-brainer!!
Perhaps it wasn't a completely wasted exercise as it may have given others food for thought. I liked the Premium Bonds idea to give a bit of excitement.

Bullygig

David_B wrote:

The reason the credit is interest free is for a very good reason, because the original price is higher than it could be. They don't give it a way and you'll just pay the interest your saving on the total price anyway.

That's not true actually, the finance part of the deal is sold to a third party company. They make their money by a few silly people forgetting to pay off the debt before the deadline and then back dating interest on the whole amount over the whole period.

I bought a sofa over a year ago, 12 months free credit. I paid nothing for 10 months then sent a cheque off recorded delivery and paid it all off in one go. Tell me why it's not sensible for me to have the £1,500 in my account for 10 months?!