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Monthly payment myth

March 5th, 2010 at 06:20 pm

Text is monthy payment myth and Link is http://moneysavingmom.com/2010/03/buried-in-debt-with-monthly-payments.html
monthy payment myth

Little blog post on monthly payments.

I remember looking through a mail order booklet when I was young. It had all sorts of nifty gadgets for the kitchen and house. All with very low prices between 3 and 7 bucks with a few really fancy machines for up to $25. I thought they were a great deal, till my mother pointed out that was per month. None of the ads said how many months you would be paying for! I am sure the info was in the fine print somewhere, but the mere thought of buying something when you don't know the price seemed like a huge risk to me.

I was really bothered by the total cost of our house, but didn't see any other way to own a house. Saving up 100K or more while paying rent didn't seem to make any more sense then paying 200K for a 100K house.

Maybe we made the wrong decision on that one, but at least we in general avoid the monthly payment trap with all other items.

2 Responses to “Monthly payment myth”

  1. creditcardfree Says:
    1267818797

    I have a friend who has fallen for the same trap. They have a home equity loan, student loans and it's gotten so bad they have to take out a 401K loan! Ugh.

  2. gamecock43 Says:
    1267881509

    I hate monthly payments. I hate that we just bought a rental property and added a bunch of monthly payments because of it.

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