Another Way to Stay Broke...Rent A Wheel!

Since my post last week about Rent A Center I've been getting a lot of feedback.

Someone close to me turned me on to another way to stay broke!  Dont just rent TV's and couches you cant afford (at Rent a Center), rent your wheels too! 

Check out Kevin Hart, he has the solution for your played out vehicle!

Rent-A-Wheel Radio Commercial, 'Official Voice', featuring Kevin Hart

Did he just say that if you can pay rent, you can go to rent a wheel...there is so much wrong with that statement, don't even get me started!

MsMoneyGuru

New BMW 3 Series!

Hello! I am a wife and mother, hoping to have more kids, I drive a Toyota Highlander...last thing I need is a BMW 3 Series. But someone out there thinks I need one!  How exciting...for me (or them?).

I did some fishing around and the new 2012 BMW 3 Series (328i) starts at $34,900. Okay...a little rich for my blood, given I cant easily get a stroller in the truck...but I digress.

According to the brochure, the "Offers to get your (my) pulse racing" is a choice between $1,000 credit on select BMWs OR 2.9% APR financing!

Check it out!

Since I'm broke (still in debt), I'll most likely take the 2.9% financing please. After all the BMW company must know that I can afford it, or they wouldn't have sent me the offer, right?

Being a broke person, I will only consider the payments when determining if I can afford this car. Even though I am NOT maxing out my retirement, I have a negative net worth, and my kids DO NOT have a college fund. I'm going to take the plunge, you only live once and I'm sure I can pay it off quickly and get back to my goals in no time!

Lets see...

ASSUMING I qualify for a 2.9% APR:

A) If I pay the car off in 3 years, I will have $1,102 monthly payments and pay $1,721 in interest.

B) If I pay the car off in 5 years, I will have $680 monthly payments and pay  $2,864 in interest.

C) If I pay the car off in 7 years, I will have $499 monthly payments and pay $4,028 in interest.

Given that I'm broke and want the lowest payment possible...I most likely will take Option C!

Oops don't forget the opportunity cost of the BMW...it doesn't stop at just $4,028 in interest.  Let calculate how much money I would have saved if I had not bought a car and just paid myself...$499/month invested in a mutual fund (for college savings, investments, or retirement) would have yielded me $60,449 over 7 years. If at the end of 7 years, I leave that $60,449 alone and don't touch it for 20 more years, I will have $442,976...

Oh Darn! They don't mention that in the brochure!

MsMoneyGuru

Credit Card Offers, They Keep Trying!

So, my husband and I have been on our Debt Free Journey since August 2010, that's about 19 months.  Meaning that was the last time we used a credit card or loan or anything related to debt. When we started all of our credit cards were close to maxed.  Capital One was one of the first credit cards that we paid off, it had a low limit/balance.

As you may know, as you pay debt off, you start to look more desirable to banks, and they start sending you offers again. About 6 months ago, the offers started pouring in...

Here is an example of one:

In case the print is too small:  They are trying to convince my husband that he needs a little cash....

They say "Get 0% APR for 12 months with these checks!"  The checks are attached...

"There are times when you need a little extra cash. With your Capital One account ending in xxxx, you can get the cash you need at a low 0% APR for 12 months."

The offer goes on to mention that although the offer is for 0% APR, they will charge us a 3% transaction charge...TRANSLATION: Instead of charging you interest throughout the next year, we will just charge you up front (how convenient).

They also tell us that these checks are for necessary expenses.  I love how they draw a picture of how simple it is to get this FREE money! In case I can't read...LOL

Thank God, we started getting smart with our money! This use to be so tempting to me! I mean...0% for 12 months! Even 3% is cheap money--the old me might have borrowed it Just In Case (because you never know when an offer like this may come your way again). BUT because we changed the way we look at money, we have saved over the past 19 months an emergency fund.

So for the amount of money that is available for us to borrow with these checks at 3%, I have more then that amount sitting in my savings account ready for me to borrow at a true 0% interest rate, oh and I can take my time paying myself back...genius.

What's in your wallet?????

CASH

MsMoneyGuru

More Ways to Stay Broke!

Let Montel tell you how to manage an emergency...



Dumb, Dumb, Dumb...

If I don't have $1,000 NOW, what makes you think I am going to have it when its time to pay it back? Don't forget to add the 900% interest they will charge!

Its called an emergency fund!

MsMoneyGuru

Rent A Center is the New "Pay Day Loan"!

Wonder what's keeping you broke?

Is this you?




$39.99 a week  for a TV!!!!
 
For all you math nerds...using Rent a Center is like charging your TV on 100% APR Credit Card.

See the "deal" below:
96 week rental
Cash Price - $1704.00
Cost of Rental - $2,135.04
Total of Payments "Rent to Own" - $3,839.04
 

If you want to be poor, do what poor people do, if you want to be rich, do what rich people do...its simple!

Stop buying stuff you cant afford!  


MsMoneyGuru