2011 Off topic thread(basketball,movies,etc whatever)

[sbjj]

I would if i thought that the parlay would hit more than 50/51 times. That is an entirely different issue anyway. There is no risk to that bet (if my line is correct)... anyway, the amount of risk is rewarded appropriately.

People that talk about free money with credit... it ain't free. You are basically rolling the dice that nothing is going to happen in that time frame that would cause you to miss a payment and get screwed. With cashback, I can understand that more, and I said that right up front in my first post. There is some reward. But the whole, "why pay today when you can pay tomorrow"... that is a flawed analysis because it does not account for the risk that you won't make a payment and then get hammered with a terrible interest rate (these 0% deals don't go form 0% to 6%, they go from 0 to like 28%). The risk of having to pay 30% more than you borrowed (and many times much more if you can't pay the debt and it goes to collection or something), it needs to be rewarded.

Dude, that is all under the assumption that you DO NOT have the cash. NO one should pay with credit unless they have the means to pay for it. Of course there is risk. but if I have 50K in the bank, and pay 4K a month on my credit card, the chance I can not pay off that balance are slimmer than the risk on your parlay.

[sbjj]

What are you buying that costs 50k and is interest free for 5 years?

Already did it. 2005 Yukon Denali. Probably closer to 40K

[Vandelay]

I was thinking more along the lines of a car in the 15-30k range, not 50k. And it's not like id buy a car that uses up my whole savings anyway.

[sbjj]

I was thinking more along the lines of a car in the 15-30k range, not 50k. And it's not like id buy a car that uses up my whole savings anyway.

You do what you feel is best. But right now I could easily buy a 15-30K car in cash. But if I could get 1.9% interest I would jump on it. That is just me. i feel I could quadruple that money in a couple of years betting. Of course i could also lose it. And that is the risk I take.

[MMA_scientist]

So what happens when you drop your entire savings to buy that car and then lose your job? Come on dude. I would rather still have the cash in that instance.

Well, you don't drop your entire safety net on a car, which is my point. If you have to pay for it, you won't do it (because it is a terrible idea). But if you don't have to pay for it, even if you only have 20k in the bank, many people will still do it.

There are benefits to credit, I am not saying there aren't. I just personally don't think the risk is worth the reward.

[Luke]

I forgot they do sometimes offer cars at 0% financing,my bad .

[sbjj]

Also Vandelay. If Scientist worst case came true, and you lost your job or were diagnose with a life threatening illness. At least you still have your 15 to 30K. Not a car that is worth 60% of what you bought it for.

[sbjj]

I forgot they do sometimes offer cars at 0% financing,my bad .

They might be offering close to 0% on houses pretty soon.

[MMA_scientist]

The bottom line is that it is just two different ways of thinking. There is no "right" side to this discussion. There are probably an equal number of people on both sides of the discussion, from your mom to your financial advisor- depending on who taught you and how you view it.

I was just trying to win 20 year old poopoo over to my side before he got sucked into becoming a debt slave for live.

[trotterz]

Dude, that is all under the assumption that you DO NOT have the cash. NO one should pay with credit unless they have the means to pay for it. Of course there is risk. but if I have 50K in the bank, and pay 4K a month on my credit card, the chance I can not pay off that balance are slimmer than the risk on your parlay.

Totally agree.
I have had credit cards for about 8 years now, never paid even 1$ of interest or any fee. And probably got about 2-3000$ in rewards for points and cashback

[Vandelay]

Either way your gonna be hurting. At least I wouldnt get fuckin murdered with my credit and have to repay the car loan anyway when im constantly missing payments.

[MMA_scientist]

They might be offering close to 0% on houses pretty soon.

I just refinanced my house and felt lucky to get the 4.125% rate I got. I almost went for the 15 year for 3.5%. That is insane.
I will tell you this though, I had to jump through a ton of hoops on the refinance, it is much harder to get a loan now.

[sbjj]

Either way your gonna be hurting. At least I wouldnt get fuckin murdered with my credit and have to repay the car loan anyway when im constantly missing payments.

Sadly, that will be the least of you problems if the worst happens. But I am telling you from experience. Nothing soothes the soul on hard times more than cash. A car you bought for 30K that is now worth 15K will not. You can always work with debtors, especially these days. But you may need to live off that cash during the hard times.

[sbjj]

I just refinanced my house and felt lucky to get the 4.125% rate I got. I almost went for the 15 year for 3.5%. That is insane.
I will tell you this though, I had to jump through a ton of hoops on the refinance, it is much harder to get a loan now.

Yea, I have heard that. 4.125 is damn good. Amazing how cheap it is to own these days. Sdaly many young people are finding hard to qualify though. And this is at a time that lenders SHOULD be handing out more loans. Their risk is much lower now than it was when they were handing out loans to people who had no jobs and no down payment.

[Svino]

I forgot they do sometimes offer cars at 0% financing,my bad .

http://www.youtube.com/watch?v=CAgz51U6Jvw&feature=related