We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Three contract iPhone 5S - flexible upfront cost
Options
Comments
-
The point is - why pay an APR of 42.5% or 213% on a disguised loan from Three rather than saving up in advance (without a loan) for this £709 iPhone or even getting a 14.9% APR loan from Apple? Three's disguised loan makes no financial sense.Still don't get what you're trying to get at.0 -
Three's disguised loan makes no financial sense.
As posted in another thread, it makes no sense to you but may to others.
For some a set amount each month is far better than a big payment, and as has also been said on some contracts it can be cheaper to get a contract than go sim free if you plan on seeing out the term. Others may have a poor credit rating that makes a loan harder to get ,or have other finacnial issues that prevent them getting a loan but can easily be approved for a monthly payment contract.
There is no one size fits all answer, it depends on circumstances and what deals the buyer has offered to him.0 -
It makes sense to others only because they don't realise they are getting a disguised loan with a very high APR.As posted in another thread, it makes no sense to you but may to others.
So why not save up in advance, as one would be more likely to do for any other product such as a laptop or new television? If one isn't the type of consumer who would get a loan for a laptop or television, then why get a disguised loan (with a high APR) for an iPhone?For some a set amount each month is far better than a big payment, and as has also been said on some contracts it can be cheaper to get a contract than go sim free if you plan on seeing out the term.
One's credit rating would have to be very poor to need to pay an APR of 42.5% or 213%. The iPhone is a premium product whose price is not suitable for those with little disposable income.Others may have a poor credit rating that makes a loan harder to get ,or have other finacnial issues that prevent them getting a loan but can easily be approved for a monthly payment contract.0 -
The point is - why pay an APR of 42.5% or 213% on a disguised loan from Three rather than saving up in advance (without a loan) for this £709 iPhone or even getting a 14.9% APR loan from Apple? Three's disguised loan makes no financial sense.
I could of bought the phone outright like the majority of other people but I'm pretty sure I wouldn't of got the same minutes etc.0 -
It makes sense to others only because they don't realise they are getting a disguised loan with a very high APR.
As I said there are people for who the fact is a set monthly fee, is better than a high down payment. It doesn't to you or I but not all people are in the same state.So why not save up in advance, as one would be more likely to do for any other product such as a laptop or new television? If one isn't the type of consumer who would get a loan for a laptop or television, then why get a disguised loan (with a high APR) for an iPhone?.
Because they don't want to, are not able to or choose not to. Why is irrelevent thats a choice they make, it's not down to you or I to second guess their financial status.
The catalog companies and places like Brighthouse make a business off it, so it works for some people. Anyone with a low set income may choose to pay small fixed weekly or monthly fees as it's the only way they can afford something expensive. These compnaies show total cost but people still use them.One's credit rating would have to be very poor to need to pay an APR of 42.5% or 213%. The iPhone is a premium product whose price is not suitable for those with little disposable income.
The APR is irrelelvent, the person disposable income is irrelevent. If they are willing to pay the costs, no matter what they give up, they can have the phone.
Apples sales figures show that people want the iPhone and are willing to pay for it.
Cigarettes, booze, drugs and Sky TV can all be seen as non essensial products, but many poeple on low income enjoy them. Its all about what choices you make.0 -
Three's "The One Plan" normally costs £15/month on a 12-month contract or £18/month on a 1-month contract. Are you saying you are getting larger allowances than this?I could of bought the phone outright like the majority of other people but I'm pretty sure I wouldn't of got the same minutes etc.0 -
These purchase methods are not in the spirit of money saving. On the contrary they are part of an expensive "buy now pay later" consumer debt culture. These forums are about saving money, not paying more through unnecessary disguised loans.As I said there are people for who the fact is a set monthly fee, is better than a high down payment. It doesn't to you or I but not all people are in the same state.
Because they don't want to, are not able to or choose not to. Why is irrelevent thats a choice they make, it's not down to you or I to second guess their financial status.
The catalog companies and places like Brighthouse make a business off it, so it works for some people. Anyone with a low set income may choose to pay small fixed weekly or monthly fees as it's the only way they can afford something expensive. These compnaies show total cost but people still use them.
The APR is not irrelevant at all. As an accurate indicator of the cost of borrowing, it is entirely relevant and a useful comparison tool where competition is otherwise distorted by complicated prices.The APR is irrelelvent0 -
Three's "The One Plan" normally costs £15/month on a 12-month contract or £18/month on a 1-month contract. Are you saying you are getting larger allowances than this?
No I'm not that's exactly the one I've got.0 -
I think this site is about helping people to make right choices, not about finding excuses to justify wrong ones.....Its all about what choices you make.
If they make wrong choices it will be too late to tell them this when they come to DFW board with DMP on the edge of bankruptcy. Incidentally, many newbies coming there with SOA do pay through the nose for Sky TV and for expensive mobile contracts.
Taking a payday loan for food can be justified sometimes. Borrowing £99 @213% APR to buy iPhone that you cannot afford is simply dumb. Borrowing £600 @40% to buy a toy is dumb too.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards