Buying HiFi at credit, anyone?

Despite what most of the previous posters have stated, I not only do I think it's OK to buy on credit, I think it's a smart move to borrow against the future. IF, you have something better to do with your cash today AND you have a plan to pay it off.

I would say that practically everyone that uses a credit card does so with a plan to pay it off. However, life intervenes in those plans too often, i.e. your car breaks down and needs repair, your water heater breaks, you lose your job, etc. and before you know its three years later and you're still paying for that amp you bought 3 years ago. Also, the "opportunity cost" theory is difficult to apply to credit cards because the interest rates on credit cards are so high. There's few , if any, guaranteed investment vehicles available that would return more than typical credit card interest (the average rate is more than 10%). It's easy to rationalize how using a credit card is a good idea, but in reality its simply not.

I haven't paid interest to a credit card company in eight years. I pay off my personal card monthly and use new card balance transfer options which offer no interest for 12+ months. I have a PT job as an adjunct professor at a local college that commits to me two terms at a time. If you can figure out a way to use credit to your advantage, it IS a smart idea. The concept of leverage is not new and corporations do it all the time. It's wise to use other peoples money if the benefits outweight the costs. Each situation needs to be analyzed based on their own merits. It's not fair to paint the use of credit with a broad brush. Also, I disagree that most people seriously have a plan to pay off their cards. I think most people spend with reckless abandon with the no fear of consequences or the future.

Dave Ramsey has a radio show that talks about becoming debt free. He believes that credit cards should be outlawed. Dave is different than some in that he has a serious spending problem (similar to an alcoholic). He can't trust himself to use a credit card. I trust myself. I don't pay interest cause the balance gets paid. People that say that "life can get in the way" aren't acting responsibly. When the bill comes, it gets paid. That's life and that's what happen.

As already has been touched on, credit cards CAN be a good idea to use. What if you take someone like me who is responsible with credit cards and give them one that gives you savings for buying gas at the pump. 3% to be exact. Now, it's costing them LESS than if they paid with cash. All it takes is a little responsiblity and not abusing the card.

There sure are some fiscally responsible members here at Audiogon. Methinks the ones who are in debt over gear will not be so eager to disclose this fact.
I for one have financed gear with no interest, put it on credit cards, and paid cash.