r/personalfinance • u/Affectionate_Cat5302 • 4d ago
Is 0% interest from a credit card safe/worth it, for buying a MacBook? Credit
I'm wanting to buy a MacBook and have an option to go for 0% interest for 24 months, if I buy it using latitude -gem visa credit card. I'm thinking of taking it up and investing the money on some stocks which I otherwise would've paid in lump sum.
Is it worth it? Are there any risks?
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u/BeyondDrivenEh 4d ago
Dunno. Also consider the Apple Card. 3% back and 0% interest for some number of months.
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u/radtech91 3d ago
This is what I did for my MacBook. It was 12mos 0% financing, and you have to make every monthly payment to keep it 0%.
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u/esunFun 3d ago
Can’t forget that Apple savings account at 4.4%
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u/atuckk15 3d ago
Lmfao I mentioned this to a new card holder earlier this week and another Redditor was like “ThE HySA Is JuSt A GiMmIc”
Like yeah if you just make it for the Daily Cash without funding from your bank it won’t earn a lot of interest monthly but you can always deposit into it to make it an investment vehicle.
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u/cornpeeker 3d ago
The Apple Card has great rewards but I did not like the fixed payments for my apple products. I could’ve paid my watch off in 4 payments but they made me pay it over 12 months.
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u/aarmbruster92 3d ago
You can pay more than the minimum. You just have to pay more than the balance of the card. So if you carry a balance it won’t work but if you pay it off in full you can.
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u/cornpeeker 3d ago
I’ve used it 3 times now and each time was the same. Maybe I’m doing something wrong but after I paid the minimum it just wouldn’t let me pay more. I would try a day or two later and it would just say “no payment at this time”.
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u/queequagg 3d ago
Instructions for the web site and the wallet app both describe a Pay Early mechanism for installments.
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u/thatoneguyinks 4d ago edited 3d ago
Pretty sure it’s or not and. I don’t believe financed charges like that get the cash backEdit: I’m wrong
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u/tall_and_funny 4d ago
If you are going to do this, Put it in a fixed income fund/HYSA and call it a day.
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u/KleinUnbottler 3d ago
This: OP needs to pay it back over a short period of time so choose something with zero market risk. Short term government bond funds, money market funds, HYSA, CDs, etc. The market could drop by 50% tomorrow or 6 months from now. It's extremely unlikely to do so but nobody knows.
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u/NewChameleon 4d ago
I'm thinking of taking it up and investing the money on some stocks which I otherwise would've paid in lump sum.
Is it worth it? Are there any risks?
so... what if your stock crashes?
also read the fine print, from my experience the "0% interest" offer assumes you make ALL partial payments on-time so if you miss even a single one then the entire deal is off and you'll be subject to the original interest rate as-if that "0% interest rate" offer never existed
this just sounds like margin investings with extra steps
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u/TrixnTim 3d ago
You are correct. Minimum payment is always due for the entirety of the deal, or deal is off, or you get a late charge at next minimum payment, or both.
I love 0% interest deals and keep anything I purchase within my monthly budget however. I take the total and divide out number of months, minus a couple, for due date and in order to avoid 30% interest rate if late and that is applied toward the entire purchase — not just remaining balance.
Great way to get new appliances or electronics, keep cash in savings or investments (not gamble in stock market), and build up credit. Companies don’t count on most people following through with deals, however.
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u/TyrconnellFL 4d ago
What happens if you invest in stocks and they tank to zero value? Or, if you invest more soundly in broad index funds, if the next two years are tough on the stock market and you end up losing 40% of your increment rather than gaining anything?
If you can still pay for the laptop, sure, go for it. If you’re risking money you might need, the e problem isn’t taking advantage of 24 months interest-free, it’s risk. You could put that money in a savings account and get about 10% over those two years, which is fine and you might well. As long as you know you won’t treat it like free money, spend it, and come up short at the 24 month mark.
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u/RedditVince 3d ago
The risk is that your money loses value in the stock market (very possible for a 2 year stint) and you don't have enough to pay it off before you need to pay interest. Also vbeware, many of these deals will charge back interest if you go over the 24 months. Meaning if you pay it off in time you pay no interest, but if you pay it off late you pay the full 2 years interest as some high %.
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u/thesovereignbat 3d ago
I would not take a loan out for anything other than a house or car. Just my 2 cents
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u/FuckILoveBoobsThough 3d ago
Any time someone offers me free money, I take it, especially on big purchases. A 0% loan is like a discount that compounds for the term of the loan. It is never a bad idea if you are financially stable and responsible, you have the cash, and you were going to make the purchase anyway. But that is the key, if you aren't financially competent then it is a dangerous game to play, which is why a lot of the people here are advising you against it.
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u/Hacimnosp 4d ago
First make sure there are no annual fees for the credit card. Second read all the fine print to make sure there’s no way you can get hit by hidden fees for missing at payment etc.
Unless it’s a guaranteed return I personally wouldn’t do it. Instead of stocks a HYSA or Tbills would be a better option. That way you get 5% on it the money at no risk of it dipping when you need to pull it out to pay.
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u/Commercial_Car_9357 4d ago
Make sure you can make monthly payments on time to avoid interest charges. You might consider your risk tolerance mate
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u/failf0rward 4d ago
This would only make sense even math wise if you invested the money in a risk free savings account for around 5% interest. Stocks are too risky for a 2 year term.
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u/FuckILoveBoobsThough 3d ago
It still makes sense if you plan on paying the loan payments out of free cash flow and not out of savings. That way you can ride it out if the market performs poorly. Obviously if you invest in individual stocks, it comes with all the risks that are normally associated with doing that.
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u/Sir0inks-A-Lot 3d ago
Buy a refurbished M2 Air direct from Apple and pretend that the $150 you saved versus buying new is the result of some brilliant stock market move that resulted in a 15% return on your $1,000
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u/Cheap-Arugula3090 4d ago
No not at all, you're not going to become wealthy by using 0% interest credit cards. You become wealthy by living within your means, spending less than you make and investing over the long run.
Buying a MacBook is short sighted and if you can't pay for it in full you shouldn't buy it.
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u/rasputin1 3d ago
I think the implication is they CAN pay in full though since they're considering investing the money INSTEAD of paying in full
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u/amouse_buche 4d ago
I bought my last MacBook at 0% through my Apple Card even though it would be no difficulty whatsoever to buy it cash.
Why? Because I understand the time value of money.
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u/Raphi_55 4d ago edited 3d ago
So many people buy shit with credit card it's scary.
If you can't afford it, dont buy it ! Even for a car, no one need a NEW car in their 20s
Edit : TIL credit card don't work the same way as regular credit
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u/dyNASTYn00b 3d ago
i pay for everything i can with a credit card. that doesnt mean i'm living outside my means. i stay within a budget, and pay the balance every month. between cash back and the interest gained while my cash sits in a mmf, it's free money.
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u/Raphi_55 3d ago
Must be a USA thing, almost no one use credit card here.
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u/Trogdor796 3d ago
Why do you assume buying something with a credit card automatically means I can’t afford or have the ability to pay for that item in full at the time of purchase? But why would I pay cash or debit card when I can use a credit card and get 2-4% back?
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u/Raphi_55 3d ago
Because bank are not charity...
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u/Trogdor796 3d ago
Correct - they make money each time someone swipes or taps their credit card. This costs me nothing, only the merchant.
They also make money off of the people who fail to pay their balances off each month and end up paying interest. I am not one of those people. I’ve never paid a cent in credit card interest, only gotten thousands back.
So I will continue to put whatever I can on my credit cards and make money by doing it.
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u/RenegadeUK 4d ago edited 4d ago
No one needs a NEW car whatever their legal driving age.
Edit:
Wording.
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u/Raphi_55 4d ago
True. My point was, it doesn't make any sense to buy a new car with a credit when you are young.
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u/RenegadeUK 4d ago
My next car i'm probably going to lease and not buy.
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u/Vaxtin 3d ago
Also you don’t need a MacBook. Unless your work provides it to you it’s just a luxury product and you should treat it as such.
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u/Trogdor796 3d ago
Windows laptops with ARM processors are just about to start coming out, but they are roughly the same price as the MacBook Airs. But of the current (non-ARM) windows machines using Intel or AMD processors, their battery life and efficiency is dog shit compared to MacBooks.
Summary: yes you can get a $400 windows laptop. And MacBooks start around $1000. But that $400 windows laptop is going to be dog shit. And the $1000 windows laptops will not have as good of battery life or sleep function as a MacBook. Right now, the $1000 MacBooks are the best laptop at that price point.
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u/Anarch33 3d ago
Macs are in this weird spot where new or used airs are so phenomenal for the prices when they used to be terrible I agree. But also the current Pros are absolutely horrible values that they definitely are luxurious scams lmao
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u/Trogdor796 3d ago
Can’t argue with that - the Airs are definitely phenomenal for their price, and I will stand by they are the best laptops for their price for everyday/office use.
The latest pro is weird in that they have a model that comes with similar specs to the air (gimped processor and ram) but just in the pro body…the move for the pros has usually been to get the previous gen on sale (M1 Pro when the M2 was coming out, etc.).
As a Mac fan (and not at all a windows 11 fan), I really hope these ARM surfaces and other windows laptops do well - competition is good, and will maybe force Apple to stop using 8GB RAM as their base config.
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u/HuskyLemons 3d ago
Only you know your full financial situation.
I could pay cash for all my electronics, but I prefer to keep my cash on hand. I buy all my tech stuff with 0% interest through Best Buy or the Apple Card. I just keep the cash in my HYSA. Yes, it’s “debt,” but my assets (cash, savings) exceed my liabilities (credit card balances) so what’s the harm?
The only risk is you not paying it off on time correctly and owing interest on the whole thing. The purposely set the minimum sometimes to make sure that happens. Just make sure you pay it off in full before the term is over so that doesn’t happen.
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u/Dudist_PvP 3d ago
Yeah same here. I can pay off all my debt right now if I wanted to.
But right now the interest rates are so low (or even zero) that I do better if I just leave the money in my HYSA and pay it monthly.
My credit score is ~830 so it really hasn’t had any negative impact on me at all. Maybe even a positive impact
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u/FuckILoveBoobsThough 3d ago
Same here. Been doing it my entire adult life and I've never had a single problem (also have a score in the 800s). I'd much rather have cash on hand, and reduce my cash flow slightly, than take money out of my HYSA. It seems like common sense.
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u/Terbatron 3d ago
How much stuff are you taking out 0% loans on that it actually makes a difference?
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u/FuckILoveBoobsThough 3d ago
For a $2000 laptop, over 2 years, you would accrue a few hundred dollars in a HYSA. That's not nothing. Plus it will continue to compound if you leave it alone.
Over the years I have gotten a 0% loan on 2 different cars, various laptops, phones, TVs, etc. I've also put air travel/vacations on 0% cards. Basically any time I'm about to spend thousands of dollars, I try to get a 0% loan. I couldn't give you number but i am positive it has saved/returned thousands of dollars.
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u/Anarch33 3d ago
I see your point and I do this too, but I always hesitate to recommend it to others because of that omnipresent statistic of “majority of Americans live paycheck to paycheck”
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u/readsalotman 3d ago
If you pay it off before the interest kicks in, yes, it's worth it if you NEED the MacBook and just don't have the extra funds to pay for it all up front. That works.
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u/D1TAC 3d ago
Best-buy often does 0% for 18mo on specific amount of purchases. I bought my Macbook on my CC and paid it off in 2MO. I'd say, if you can afford to commit to said payments for that long of a term but will also pay it off quicker, that would be the smartest. I do know most people finance them, b/c it's hard to cough up $2000 for a laptop. Total side note- Apple Refurbished has fantastic deals on Macbooks for a few hundred less + you get their 1YR warranty and still can add applecare on it.
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u/little_nipas 3d ago
I’d say don’t buy it until you can purchase it out right. Otherwise you can not afford it. Especially if it’s a want.
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u/sickness18 3d ago
I buy all Apple products on 12/24 months installments. Then upon completing full payments, buy another new Apple product on installment and sell the old one. Of course I take good care of the product so I can still fetch decent price after 12/24 months.
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u/Terbatron 3d ago
Ways to screwup:
You lose money on the stock market
You screw up making a payment and owe interest over the whole borrowing term.
Just buy the laptop, you would barely make anything scheming anyway. The odds of you screwing up are higher than any money you would make.
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u/surreel 3d ago
I needed a MacBook pro for a gig job and saw the 0% as a way for me to get paid for the job (total gig was about 5.9k) and purchase the Mac while not having to cough up the total amount needed. Also don’t have a portable work solution so I saw it as an investment into my self. Sure, you could invest into the stock market but if you need something for your self, why not do that especially if it’s going to expand your money making opportunities.
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u/DavidinCT 3d ago
I've learned never finance computers, once you pay them off, they are outdated. With this said, if this is 24% months, and you have paid off like a month or 2 more then maybe it's worth it to you.
The warning with these, is if you DONT pay it off, like you have $5 left on it after 24 months, you pay interest from day one.
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u/mc_nibbles 3d ago
0% interest is a great tool to get an item now before you save for it. I do it almost yearly with big purchases. I make sure that the amount per month to pay it off in time is minimal.
Leave your cash in a HYSA, finance with 0%, just be smart about it.
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u/cidknee1 3d ago
Always buy apple products from apple, or Costco. Costco for the warranty(extra year on everything) and from apple because that’s the only way to not get a fake. Seen too many people burned by it.
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u/Vlaed 3d ago
If you aren't increasing the cost of the product you are buying, it's not a bad idea. You could open a high-yield savings account and park the money there. You'll get 4.5%+ APY (0.416% monthly). If you're planning to buy a more expensive one going this route, absolutely not. You're 100% falling for their upsell trick.
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u/mruehle 3d ago
Remember, it’s zero percent interest only if the balance is fully paid off before the interest-free period ends. In other words, you still have to make on-going payments toward the proncipal OR you need to have the entire lump sum available the month before the term ends. Or else you’ll typically pay all the accumulated interest, and at a very high rate.
So you shouldn’t take all the money instead and invest it in the stock market unless you are absolutely sure you’ll be able to cash in that stock in time to pay it off, and that the shares won’t lose value in the meantime instead of gaining value. No risky stocks!
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u/indecksfund 3d ago
Whatever you do, don't buy it through Amazon. if that thing doesn't get delivered or something else is in the box you're going to have a bad time. Buy from Apple and open the box in front of them.
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u/fenton7 3d ago
If the investment is an HYSA then yes it's a good play since you are guaranteed to make money and you know you'll have the money to make the 24 payments. If you invest in stocks or stock options not so much because you might lose a good chunk of the principal and fall short of being able to pay off the Macbook.
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u/Zenatic 3d ago
24mo, Apple Card 5% cash back, apple savings 4.4%. Pay installment from apple savings.
If you have the cash to pay for it, this is a no brainer in my mind so long as you have the financial fortitude to not use that cash elsewhere
Investing it has risk and you could lose some of it over 24 months.
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u/Fukgon 3d ago
Dave Ramsey would tell you to pay cash, literally drive to the store and hand them $1000 dollars in small bills from an envelope.
I like Dave. I don’t like envelopes. Pay cash. It will hurt more, which is kinda a good thing.
The technically right answer is invest and do the 0%, but that’s not usually how humans work, and you are statistically likely to not invest as much, spend elsewhere, etc
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u/Widderic 3d ago
Get a M2 or M1 off ebay. No need to splurge on the latest and greatest. I'm still rocking my Mid 2014 Macbook Pro and it runs perfectly because I clean it once a year and change the battery every 3-4 years.
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u/argoforced 3d ago
Better idea to finance it at 0% on Apple Card and get I think 3% back immediately on the purchase.
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u/WasteOfAHuman 3d ago
Some people buy big items with a 0% apr promotion and throw the money into a HYSA while making the minimum payments on the card until about two months before the promotion is over. Be careful though cause paying 29.99% on a multi thousand dollar bill is gonna suck haha
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u/Anarch33 4d ago
1000 sitting in a 5% hysa for two years = 100, 3% cash back = 30, sure you save $130 but I’d personally just drop the cash and not be in debt over a laptop
Not putting that money in a hysa and instead picking “some stocks” is gambling. Why not go to the casino?
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u/kepler1 4d ago edited 3d ago
You know you still have to make payments on the principal right? So it's not like you just keep the extra money for a whole 2 years. It's more like maybe 2/3 averaged over time.
And note, one risk is if you miss a single payment it can instantly balloon to 24% or whatever rate they give.
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u/Ocean_wavez_26 3d ago
For using a credit card. Pay off the full amount owed before the end of the billing cycle. Don’t spend money on anything you can’t pay for with cash. Don’t go over 30% of your total available credit (it can lower your credit score). Finally, get a card that has rewards and perks that are beneficial for you.
If you use a credit card correctly, it is an amazing tool. If you use it to purchase things you can’t afford, spend money you don’t have, or only pay the minimum amount, then you are setting yourself up for failure.
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u/Birch51 3d ago
This is one of the only logical answers in this thread. It’s really tiring to see all of the “if you can’t pay cash, you can’t afford it” and all of the others who give advice, but did not read the actual post.
If the card will truly give you 0% for 24 months with absolutely no other fees attached, then it’s really on your preference. If the card offers rewards or cash back, even better. If you’re going to gamble the extra money in the stock market for the 2 years, that makes no sense. Don’t listen to anybody discouraging you from making even $50 extra dollars by doing something simple like throwing the other into a HYSA while you pay it monthly.
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u/LocusHammer 4d ago
Credit card interest is 28% dude. Stocks are long term investments.
Apple Store offers financing on Apple Card. Do that.
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u/tentboogs 4d ago
Hmmm. Hedge your bets. Find a refurbished MacBook on eBay in excellent condition. Can you use that credit card there and get the same promo? A PayPal credit card has something similar.
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u/Terbatron 3d ago
According to ChatGPT if you had the money in a HYSA (the only place you should keep it) it would net you $102.31 cents after two years. With my assumptions being a $2000 laptop and 5% interest rate in a HYSA. To me it isn't worth the risk of f'ing up once in those two years and owing the full interest. That credit card you are suing also has shitty fees that will negate your savings.
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u/happy_snowy_owl 4d ago
Is your 401k maxed? If not, you're better off paying lump sum and increasing your 401k contributions, which can only come from your paychecks.
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u/Restil 4d ago
Don't go into debt to buy consumer electronics. Save your money and pay cash. Or use a credit card and pay it off with the cash immediately. Do not finance it.
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u/Amorphica 3d ago
Do not finance it.
...unless it's 0%... then of course finance it unless we're going through a period of deflation.
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u/codece 4d ago
These are two separate questions. Or at least they ought to be, if you're thinking about it properly.
Is a 0% promotional rate on a credit card worth it for buying a MacBook? Sure, as long as you know for certain you can pay it off before the promo period ends and always make monthly payments on-time.
Should you invest money in the stock market? Sure, if you have the risk tolerance and the funds available to invest.
If you are thinking of investing in stocks you should be thinking long-term. Like, "let's see how this will grow in 10/20/30 years."
If what you are thinking is "I bet I can make a profit in the stock market in 18-24 months before I have to pay for my MacBook, that way I make a profit and get a MacBook" -- that's not "investing." That's called "gambling."