Re:Poverty in America: Greater Than Statistics Indicate
by zaroth on Friday November 30, 2018 @04:47PM
(#18572988)
I think there’s nothing inherently wrong with spreading out payments for durable goods over the lifespan of the device, only if it can be done at a reason APY.
The problem with pay-as-you-go is the interest rates, penalties, fees, etc.
When AT&T or Apple sells me a phone with a monthly payment, I take it because it’s literally the price divided by 24 payments. Zero percent interest. No brainer.
Better debt servicing and better risk assessment and higher trust in buyers would bring down default rates and decrease APY making these programs reasonable and proper. At the extortionate rates necessary due to the extreme default rates and difficulty in collecting payments, they are terrible.
The problem with pay-as-you-go is the interest rates, penalties, fees, etc.
When AT&T or Apple sells me a phone with a monthly payment, I take it because it’s literally the price divided by 24 payments. Zero percent interest. No brainer.
Better debt servicing and better risk assessment and higher trust in buyers would bring down default rates and decrease APY making these programs reasonable and proper. At the extortionate rates necessary due to the extreme default rates and difficulty in collecting payments, they are terrible.