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Inflation Question

We want to redo our kitchen and we have the cash to pay for it. Knowing that prices are really good right now do to the recession. My DH thinks that it might be a better deal to have it done on credit because when inflation hits we will be paying with dollars that are worth less. I think that it is about the same or paying cash now is a better deal because prices are pretty good right now and when/if inflation does hit us hard prices are going up. What do you ladies think?

Answer Question
 
dillonsma

Asked by dillonsma at 1:37 PM on Sep. 24, 2009 in Money & Work

Level 5 (81 Credits)
Answers (7)
  • I would look at your APRs on those credit cards-do the math with the added fees and ask yourself if you are comfortable paying out that much for a job that you can just pay cash for.

    Personally-if you have the cash to pay for it now-why involve a middle man? You will be getting a better, cheaper deal if you pay cash than if you pay with a credit card.
    JennRN09

    Answer by JennRN09 at 1:38 PM on Sep. 24, 2009

  • Um inflation has already hit sweety. So pay cash so you don't have to pay interest.

    luvmygrlz

    Answer by luvmygrlz at 1:40 PM on Sep. 24, 2009

  • Kinda confused about the inflation thing, some studies say inflation hits lowest since 1955 and others say differently.
    dillonsma

    Answer by dillonsma at 1:56 PM on Sep. 24, 2009

  • Additionally our credit cards are very low interest due to we have excellent credit.
    dillonsma

    Answer by dillonsma at 1:56 PM on Sep. 24, 2009

  • So-why pay more for something if you have cash?
    JennRN09

    Answer by JennRN09 at 2:10 PM on Sep. 24, 2009

  • If you can invest the money at a higher percentage rate, then take out a loan; otherwise, pay cash.
    rkoloms

    Answer by rkoloms at 3:07 PM on Sep. 24, 2009

  • In an economy like this, somebody will be really happy to HAVE a job that will pay CASH, and you can probably negotiate a deal BECAUSE you're paying cash.

    Why would you want to pay interest, no matter how low it is? That minimal interest may cancel out any logic that makes you think your dollar will be worth less later. I think your husband is over-thinking it.
    Anonymous

    Answer by Anonymous at 9:38 AM on Sep. 26, 2009

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