You can afford to take out a mortgage on a lot less savings than that. Your income, including the money you save by not renting, would, until recently, be sufficient to cover the mortgage repayments.
And welcome to the code of advertising practice... honest, decent and truthful.
Tiddy Ogg.
Yes, I should have mentioned house purchase.
No. I would have thought Argos would start charging interest once the BNPL (Buy Now Pay Later) period ends. Someone who still has £1,000 on their card after 12 months that can't pay it off should make Argos a tidy profit on subsequent interest charges.
You have to rememeber that Argos only offers these BNPL deals to make a profit, if people kept within the terms and conditions and paid within the interest-free period on the BNPL cards Argos would make NO profit. Infact, it seems the only way Argos could make a profit is if people forget to pay as they don't allow you to carry a balance over without being hit with hefty deferred interest charges.
Not strictly true, as they gain many sales to customers who wouldn't buy at all if they wern't getting the interest free period. So they may be losing say 5% interest on the money , but they have gained a 30% profit on the sale.
At 12:21:42 on 03/08/2006, Sharky delighted uk.finance by announcing:
If the credit is provided by a third party then they may also get commission on that.
Sharon O. wrote
The profit is from Argos's markup, the interest on the loan usually goes to an under-writing bank.
Not if it is at 0%. They will get a bit less than the loan value initially.
"Alex" wrote
How is: "not putting away anything at all each month", implicit in: "anyone who puts away the right percentage each month"?
At 20:36:45 on 03/08/2006, Tim delighted uk.finance by announcing:
You either reserve the entire amount up front or you reserve it in monthly blocks. The net result is the same.
"Alex" wrote
True. So you didn't mean what you said the first time? :-(
At 10:15:17 on 04/08/2006, Tim delighted uk.finance by announcing:
Absolutely I meant it.
"Alex" wrote
The first time you only spoke of: "... anyone who puts away ... each month."
Then you said you don't need to put some away each month...
Didn't you originally mean: "monthly *or* upfront" ?
At 13:52:07 on 04/08/2006, Tim delighted uk.finance by announcing:
Indeed. Either out of income or out of the savings you already have.
You need to learn what 'context' is.
They're effectively the same thing. If you can't see that there's not much point continuing.
"Alex" wrote
To "put away [some] each month", requires an action each & every month.
How many people (who already had enough in savings at the start) do you think would actively move an amount each month?
"Alex" wrote
I already know.
Perhaps you should learn what "implicit" is?
"Alex" wrote
Don't be silly. The first involves several, smaller & regular, amounts and the second involves a single, larger, amount.
Can't you see the difference?
There is a difference only if you want to see one, but it is not of any significance, since there exists a generalisation which encompasses both. This is what was implicit in what Alex was saying.
"Single" is just a (rare) special case of "several", since we can conveniently define "several" to mean "some number usually (but not necessarily always) less than two dozen and usually (but not necessarily always) greater than one". "Regular" just means "according to some rule", and the rule doesn't
*have to* be (though it usually is) that the putting by should happen on frequent repeated occasions at equal intervals. "Smaller" and "larger" are really neither here nor there.Even if the above fails to convince you, the key lies in how you interpret "put by". You don't have to have a separate physical mattress or pot or savings account, under/into which you stuff/pay the regular amounts. So even if you already have enough in one pot, without needing to rely on top-ups from income, there is no need explicitly to transfer small sums regularly from this general pot into the specific pot earmarked/ringfenced for repaying the loan principal at the appropriate time. It suffices to "re-purpose" sums within the general pot, and this re-purposing (changing the earmarking) can count as putting by, even though no physical movement of funds is involved.
"Ronald Raygun" wrote
But Alex originally only said "each month"!
You can't implicitly mean "quarterly" or "yearly", let alone "single payment", when you say (*explicitly*) : "each month"!
"Ronald Raygun" wrote
Ah, but how do you define "each" & "month"?
How can "each month" be anything other than a frequency of "monthly"?
"Ronald Raygun" wrote
Perhaps, but you'd usually be "putting aside" smaller amounts if you are doing it more than once, but a larger amount if doing it only once - wouldn't you?
"Ronald Raygun" wrote
Maybe so, but in that case you'd "re-purpose" or "change the earmarking" of the funds only *once*, at the very start, and not "each month". Wouldn't you?
Selective quoting. What he said was "the right amount each month". Depending on how much had previously been put away as a lump sum, implicitly, would determine what the right amount to be put away explicitly each month would need to be.
Quite. That's exactly why they are neither here nor there. The average size of each transfer is a consequence of their frequency.
No more so than you could be said to have "put by" the regular amounts from earnings in advance of even having earned them. Our putative buyer is merely aware that he has to stump up £1000 in month 10 (say) and so his repayment fund needs to grow by (he needs to "put by") £100 each month (at least on avergae).
Each month he can decide whether to achieve that by physically transferring money from his income account or by re-purposing £100 of savings. The re-purposing decisions don't need to be taken in advance. Indeed, they can be postponed. Gosh, I forgot to re-purpose last month's £100 of savings. Not to worry, I'll re-purpose £200 this month.
The fund needs to reach its target by the appropriate time. How it gets there (by what time-profile of account balance) doesn't matter. He can re-purpose £500 at the outset and then £50 a month from earnings or nothing for the first 5 months and £100 for each of the last 5. Or anything else.
Their credit is provided by "ARG", so technically it looks like all their credit is in-house and not provided by another company which a lot of store cards seem to be.
Note that even if you manage to 'remember' to settle up on time, Finance companies specialising in these BNPL deals (such as Hitachi Capital) will charge a £25 'arrangement' fee and also sting you with an extra fee if you choose to settle using a credit card.
So, it's never 0% which ever way you look at it.
Free lunch? what free lunch!
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