Are Loans worth it?

[Kaneki05]

I have never once been in debt nor want to ever be and well my perspective on loans is negative but perhaps it shouldn't be?
I just simply want to get a new gaming laptop, but would rather not spend all my money next month to get it so is it better to get a loan then just pay it off over the year?

Updates

1 y

Also what about a loan into a savings account, if one never spends any theoretically that gives you a head start at saving right? Would there be a downside to that. And if one did it near the end of the year would the interest from that savings automatically apply?

Going to look more into myself of course but just thought to ask here cause why not lol.

[goaded]

"Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery."

That said, if it would take you 100 years to save up for a house while paying rent, a loan to end up a property owner makes sense.

Not for entertainment items that depreciate, though.

[goaded]

A loan into a savings account is nonsense; you'll pay more in interest than the bank will pay to you! A loan to buy something that will (probably) appreciate in value is the only reasonable reason to take out a loan. Well, maybe a loan to buy yourself a car that you need to get you to a better paying job...

The point is that you have to assess if the loan will make your life better in the long run, not just now.

[Kaneki05]

True about depreciation. In the long run it means spending basically 200 more but to have the convenience of keeping more money in my account so I don't have to think well next month if there is stuff I wanna buy I just can't.
I regularly buy stuff for context when it's only a really good deal or it's a pre-order of something I know will cost more later. So I guess the real question is could I save 200 by doing that compared to buying those things later or missing out on really good deals.
Probably could tbh. I remember when I pre-order something for 60 then when after a week of it been out, it skyrocketed to 150 meaning I made 90 in saving by not buying it later and if I sold it I would just gain profit back. Though I would only sell if I had bought two which back then if I had the money for 2 I would of because I had feeling it was going to become very limited before I got it.

And yeah a good answer on Quora explained for the loan into a saving account like I was thinking, it would only work if the saving account gives me more interest than I would be paying for the loan interest which that makes sense. Though as pointed out this is rare normally the interest rate on a loan is much higher than what a saving account gives. Otherwise it would kinda free money glitch but the difference would be so low anyway I wish that's how it worked.

[Kaneki05]

Though I've realised this is only if they accept it which they could reject it so might be a null idea anyway.

[goaded]

Your laptop is 5 years old? The one I'm using right now I think has Windows Vista on the hard disc (which I never ever use); it must be about 15 years old. OK, I don't use it for gaming.

Do you actually carry it around, or could you get a desktop and monitor which you can upgrade separately? Have you tried re-installing the OS (don't forget to backup first!)? That can make a huge difference to performance.

Are you sure you can't just wait a couple of months to replace it? You'll effectively be paying yourself $100 a month and the one you want might well be cheaper by then.

[Kaneki05]

Not sure how yours has lasted that long. Most laptops run into software issues after 5 years, it's not really expected for them to live longer than 10 years. Then because mine is a gaming one and uses a lot stress that time is cut more.
I prefer a laptop to a PC as I like laying on my bed, and can move it about when I want like when I want to play on xbox can just put it in front of me so I can watch stuff and play. It's not frequent I take it out of the house but my recent trip to US I needed it of course.

I don't see getting a new laptop every 5 years a issue plus I could get a more powerful one now if wanted or the same one but for cheaper.
Thinking about it the best thing to do is just save half in march then get the other half in April, though I just really don't like the thought of it breaking in-between then because my laptop is basically how I live lol.
But I know it's the right move.

I can feel it dying yet it runs at perfect performance most of the time, but some issues are becoming clear. Sometimes it randomly turns off, freezes, don't charge, it's fans are well just random sometimes they loud, sometimes not. Sometimes they cool to perfection, sometimes they feel like not doing anything. Make strange wiring noises at times cause reasons.
And the best part is the actual frame around my screen has somehow snapped so partly it's hanging off revealing the wires that connect the screen. Makes it a pain to stand up right and have to kinda tilt it now.

So yeah need a new one lmao.

[goaded]

Sounds reasonable, especially the waiting part.

I can't say this laptop is without problems, the battery life is measured in seconds, but trains nowadays often have power sockets anyway, so I can work on the move. I don't have software issues with it because I boot Linux from an external drive (which has the advantage that any old (or new!) computer can be my computer).

It's not for everyone, but it works for me.

[gorydetails]

Including the interest how much more would this laptop cost you? Do you have a gaming laptop that works?

[Kaneki05]

My laptop is on it's last legs I can feel it, had it for 5 years so I think it's better to get a new one than try fix it for it maybe only last another year or so. Plus I use it all the time, pretty much 24/7 when I am home so I for sure get my use out of it.
A loan from my bank it would 6.6APR on a 1000 take so I would be paying about 200 more in the long run.
Granted it I will probably spend less than 1000 on a new one maybe more around 700 but with my bank it has to be at least 1000.
Meaning then the laptop would really cost 900.

Though I've realised this is only if they accept it which they could reject it so might be a null idea anyway.

[douride2]

If you have to take out a loan to purchase a laptop you can't afford it. You best do without & start saving up some cash.

[laly520]

yes so bad

I would never recommend going for it

[jamesgoldman]

Only for making money or big purchases like a car or real estate

Most savings pay out far less than the loan interest charges

[Redstang88]

For a laptop? No. But for a house or car it’s basically the only way to make it happen now

[BarryLiverstone]

Yes. It’s how I was able to buy my house