I ran across an online store today that sells top name brand merchandise with a pay-as-you-go plan. I suppose stores like this serve a useful purpose, but I certainly can't endorse them and you'll never find them on my web site. Obviously they are legal, but they certainly aren't ethical Here's their headline: "No credit, Bad credit, No problem". Their feature desktop computer is an entry level, top name brand computer. This computer or one exactly like it sells for $349.00 from the manufacturer, who will sell it for $11.00 per month. Of course I assume you have to have some level of credit to take advantage of that plan. But here's the penalty you pay with this pay-as-you-go program: They require a $150.00 down payment, then $30.00 twice per month for 12 months. That figures out to $870.00, which calculates out to an interest payment of $521.00 for a $350.00 purchase. And worse ,in effect what you are doing if you make a down payment of $150.00 for a $350.00 item you are borrowing $200.00. Therefore you are paying $520.00 in interest to borrow $200.00. This defies logic. I haven't bothered to calculate the APR but it sure appears to me to be usury in disguise, and it's outrageous, another example of the poor being exploited. This isn't a new scheme they've been using it for years with furniture and appliances and I suppose it 's necessary for some unfortunates to have to employ such a scheme in order to buy something that's vital. I'm not out to punish businesses but some common sense needs to be instilled in some people. This is not a good deal In my opinion it's fraud. To buy a computer this way is utterly ridiculous. I just bought a used computer in mint condition, for a back up machine. I purchased it in an eBay auction for $93.00 including shipping. This machine has a 1.03GB processor, 184MB RAM, 20GB Maxtor H/D, a 32X CD-RW and runs Windows XP Home. It will do anything the average person needs to do with a PC. This is just one example. There are many perfectly good used computers available. Ther are used computer stores in most areas. If you attend computer shows they always have pre-owned Pcs at affordable prices. Even the major online stores have PCs that almost anyone can afford. Walmart sells a model with a Linux operating system for under $200.00 brand new. There's no need to pay an exhorbitant price for a computer. So for someone in poor circumstances to get involved in such a deal is ridiculous. I believe in free enterprise, but not at the expense of the unfortunate. Caveat Emptor- Let the buyer beware. Use my shopping Guide on: http://www.caveatemptorus.com I'm sure you can find a Pc within your means. |
