On Fri, 24 Dec 2010 14:12:05 -0800 (PST), Higgs Boson
wrote:

On Dec 24, 1:50*pm, "DGDevin" wrote:
"harry" *wrote in message

...

Well said. *Reckless borrowing is foolish, but wise use of credit to
improve
your future is what separates the men from the Harrys of the world.
Any form of borrowing merely reduces your standard of living. You pay
more.

Hogwash, a zero-interest loan to buy a car is a brilliant investment.
Instead of paying cash I leave the money in an interest-generating
investment and make monthly payments that can come out of petty cash. *A
*free* five-year loan, and a new car to drive, what exactly is the downside
of that?

I buy all sorts of things[*] under these terms. Why use my money if I can use
theirs - free?
[*] Off the top of my head, in the last five years - A laptop, carpeting for a
house I was selling, a couple of sofas, fridge, dishwasher, and a sliding
compound miter saw.

I am confused. Doesn't the buyer have to pay the accumulated interest
at the end of the designated period?

No. As long as the loan is paid within the "free" terms, there is no interest
at all. Some require a minimum payment each month, some don't. If you slip
up and go a *day* over the contract, you owe all the interest (and at a rotten
rate). Don't do that.


HB

Send me $100 and I will become your financial adviser. *Heh! Heh!

You are overestimating the value of your advice by at least $99.95.