Go on, do your worst ... I know I deserve it!

Buffythedebtslayer

Jenna, I bet the sofa is lovely, and so long as you can pay it off and you are obviously aware of what you are doing it will be fine. its not perfect but hey what is!

good luck hon xx

barron_hard_up

January20 wrote: »

Nobody's perfect! Learn from it and move on and do better in the future


Somebody tell me though, am I right in thinking there is no such thing as 0% credit for two years as it's already built into the price quoted initially which is why there is no penalty for paying off early? OP, sorry to deviate from your topic slightly but I think it's important to know that kind of thing to be a savvy shopper (and I'm Mrs Paranoid so...)

Ok, Here's how it works. My qualifications for knowing this are that for eighteen years I was a manufacturers agent in the furniture trade, selling upholstered furniture (sofa's chairs etc) into the retail firniture trade. For those of you not familiar with the term Manufacturers Agent, you are doing the same job as an area Sales Manager.

Forget the ads where all the big retailers are telling you they are doing you a favour, they will be putting about 125% mark up and possibly more on these products.

For the sake of round numbers, lets assume that a sofa costs the retailer £500 from the manufacturer. Add to that the 125% mark up and it is now in the showroom at £1125.

Because the retailer is not allowed to offer a cash price on interest free promotions because it would then be shown to not be truly interest free, the interest is added into the retail price, so lets say it's 10% a year (could be more!! finance companies are not cheap...) which is another £112.50 a year, so on a two year interest free deal it would make the sofa cost £1350. If you go for a four year deal, then your £1125 sofa will now cost you £1575. Remember you get not one penny discount off this price. Buy two sofas and you are into some serious interest.

These big retail groups make more money off what they describe as spivs, ie selling you castors for your sofa at extortionate prices, when the sofa comes with castors on it from the manufacturer. Also foot stools etc tend to be priced very high to get extra profit on the deal.

there is no such thing as interest free. The finance companies give the retailer huge commissions for each sale done through finance, it is very profitable for the retailer.

My advice, as someone who has worked very extensively in the furniture industry, is not to buy from the big advertisers on TV, no matter how tempting the ad. Fnd a highly reputable independant, buy for cash, if you can't afford cash use your OD or card, on an interest free deal and negotiate a discount on the deal with the retailer, who will, believe me, give you a deal.

Hope this helps. feel free to e mail me if you want to ask more.

Jenna

barron - thanks for explanation, I will bear that in mind for the future!

Lorian - the sig is done! It's £3 or so more than what it was at my original LBM in the summer ...

Oh well, can't be helped now. I WILL get this paid off.

~evanesco~

I'd actually say don't feel too bad. I did exactlly the same, only mine was by now pay later and a new bed & wardrobes to the tune of almost £1,500. I know I'll be debt free by the time the the paymnets are due and will pay them straight of instead of spread out over the next 2 years. I'm not stupid, and wouldn't have done it if I couldn't afford the repaymnets at their miniumum when tey becomedue. But I can affod it and I know I'll only be in 'debt' for a month and a half to pay it off. Our sofa is awful anwe have been highly tempted by the sales this year. But we know we've got the bed etc so we'll wait until after that.

Lorian

Jenna wrote: »

Lorian - the sig is done! It's £3 or so more than what it was at my original LBM in the summer ...

Well done, lets see it going down now.

Who liked Blakes 7, mum or dad?

barron_hard_up

Jenna, I make your age 21, not a lot of experience yet, and I take it OH is also a young guy? Guys in their 20's tend not to have had a light bulb moment yet, and just haven't grown up in that particular sense, I have only just relised I'l never have that £15,000 Harley Davidson motorcycle - mainly because the baroness has told me so!!

It is so tempting to want all the nice things we see in the shops, but remember, we oldies who have been working thirty years have had a long time to get the things we want and still alot of us don't have them....

barron_hard_up

~evanesco~ wrote: »

I I know I'll be debt free by the time the the paymnets are due and will pay them straight of instead of spread out over the next 2 years. I'm not stupid, and wouldn't have done it if I couldn't afford the repaymnets at their miniumum when tey becomedue. But I can affod it and I know I'll only be in 'debt' for a month and a half to pay it off.

sounds like a contradiction in terms to me, you've just added another debt:D However, sometimes, we just need to have a bed to sleep in, or something to sit on, so don't anyone beat themselves up too much...:D

tealady

Hey we all make mistakes (puts hand up here) yours it not that expensive in the scheme of things.
So set yourself and OH a challenge for 2008, perhaps you could snowball your OH's credit card debt and show him what it REALLY costs and what he could have bought with the interest he will pay. That helps me keep on the straight and narrow (sort of) as I begrudge handing over any of my hard earned money to any bank for interest payments.

newmum1

I think that by you posting on here you are aware that maybe it wasn't your best purchase, but nevertheless it has been done now, just try and keep focused on reducing your debt. I have a sofa that I brought off my my in 2002 its really old fashioned with green leaves on it and very very uncomfortable, i really hate it, but I have said that until I clear my debts which will be a good few years yet I have to make do.
Every time I sit down I think of cleraing the debt faster cause i know it means a new sofa.
Just think of it as a learning curve

In_Search_Of_Me

Just a thought - you may be able to cancel the agreement but that depends on the date you sign the agreement...just in case you have come to your sences & do want to change your mind - you have 5 day cooling off period...do a google search and loads of info comes up!