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5 Reasons Why You Should Never Finance Funitures

You have probably seen many of such T.V commercials, offering you some expensive furniture items for a piece of candy.

Now, those guys look like some really nice guys.

What more? They've just come with really lovely offers.

What else does someone need to smooth-talk a prospect to a purchase? And they do it obviously well.

According to Marketwatch, almost 50% of Americans owned up to $25,000 in debt. That is not all, 10% of the surveyed subjects owned more than $100,000.

Will you also add to the figure? I don't really want to freaky, okay, so I need to point out some of the benefits of getting a new set of furniture - weather through loans or not:

  1. A new set of furniture would obviously make your living room comfy.
  2. Then there is this fresh scent that comes with a new set of furniture and you 'll surely enjoy that for a couple of days.
  3. Your neighbor next door will obviously send you a couple of congratulatory messages on your new acquisition.

But then, are these reasons solid enough to finance a very expensive furniture on loan?

I honestly believe that obtaining something quite expensive as a furniture on loan is a 'nice' but equally quick way of digging some deep holes in your financial pocket.

Okay, I don't want you to just take my words for it, here are a couple of reasons:

1. You pay double, hundred and who knows millions of the original price.

I agree, a million seems a bit hyperbolic. But here is the point:

We all see that guy offering you a furniture on installmental payment as a really cool guy. Why not? After all, he honestly wants you in a comfy living room. Cool!

If only that was the truth, but here it is:
This nice guy is probably more interested in your pocket than your living room.

Now, If he offers you a $10,000 worth of furniture on installmental payment basis, the equation is this simple:

Get ready to pay the multiples of that over the course of the loan period. Now, he doesn't care if you decide to sell your pair of trousers and a few of your coffee cups to offset the loan.

And it's pretty serious..

40% of Americans spend up to half of their salaries to pay off interests.

Now, here is the question:

Does this sound like a wise decision for your finances?

Here are a few tips to help you decide:

Now, if any of the above questions seems like a billion dollar question to you from a pretty hostess in a million dollar hotel', it's probably not a wise decision after all.

2. If you don't have the means, you are probably not ready for it.

If you don't have the means for it, then, don't even think of getting into debt for it, unless it can get you out of debt.

But your new furniture won't.

In most cases, furniture doesn't pass for an asset. Furniture depreciates with time.

3. You probaly don't even need it

You've probably gotten caught up in societal and peer pressure before, right? No, am not just talking about wanting to join a new Kung fu lesson just because your friend recently did.

I mean something like working up yourself on a new pair of Vicuna socks – because it looks great on Kate!

You are not alone...

According to Wall Street Journal, Americans spend $1.2 trillion dollars annually on stuffs they didn't need

But, here is the point:
Do you really need this new piece of furniture in your living room? Here are a few questions to help you decide:
  1. Do I honestly need this new piece of furniture?
  2. What are my intents for wanting to purchase new piece?
  3. Can I comfortably live without it?
  4. What implication will this new piece of furniture have on my general welfare.
  5. What could be the impact [ both direct and indirect ] on my financial obligations to my loved ones.

An honest "NO" response to any of these questions is a red flag I won't love to ignore.

4. Consumer finance loans sucks

I honestly love some chocolate and cookies, but I have no pinch of love for consumer finance loans.

Okay, I get your thought. It's a strange comparison, but that is just the same way offers are portrayed:

"Some sort of financial cookies plus a cup of coffee that you can easily pick up by walking up a furniture .... loan... store."

But, it soon sends you into consumer finance loans.

Okay, if you are not familiar with that term, a consumer finance loan:
  • Is a form of subprime loan – A type of loan given to consumers with tarnished or untrusted credit history.
  • Comes with freaking high interest rates.
  • Not just that, it recommends a low level of trust which may likely thwart your future loan acquisition.

But, here is the point:
Would you still take a loan for a pair of furniture if it means thwarting your chances of obtaining one for your future start-up?

If your answer is yes, honestly, I 'll take a couple of days praying for a grand luck to hit you when Warren Buffet's type of ideas suddenly drops on your mind.


I honestly have nothing against'furniture' – So, a sincere apology to my future cushion Sofa ...

But, here is what I believe:"Every financial decision should be placed on a scale. Measure the pros and cons. If the cons overwhelm the pros. It's probably worth your time to rethink your decision"

And a new furniture acquisition on loan is one of such.

Over to you ...

Do you think it's a good financial decision to obtain a furniture on loan?

Have you ever obtained a new furniture on loan before?

If yes, how was the experience and how were you able to offset your loan?

Please drop a comment.

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