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-   -   Dumbest thing you ever took out a loan for. (http://www.thefinanceforums.com/showthread.php?t=614)

Mark A 07-01-2007 10:37 AM

Dumbest thing you ever took out a loan for.
 
So, let's hear the what why and when of this story from everyone.

For me it was a computer, souped up to the nines with every bell and or whistle I could add.

Why?: My other computer couldn't play the new video game I had bought.

When?: Last September

Now, to make this perfectly clear, at the time I was told that my employer would reimburse me for a computer, however I had not achieved the full-time status necessary for that yet, so I wound up paying out of pocket.

The good news: There wasn't any interest on the loan for 2 years, so I was able to pay it off on my own about 1 month after my wedding in January.

The lesson that I learned: Don't buy what you can't afford. If I would've saved my money I would have paid less because there would be no interest charge on my purchase.

tater03 07-01-2007 08:06 PM

Re: Dumbest thing you ever took out a loan for.
 
I took out a loan for living room furniture when I was just starting out. Dumb, dumb, dumb is all I can say on this.

katharina 07-02-2007 06:31 PM

Re: Dumbest thing you ever took out a loan for.
 
Quote:

Originally Posted by tater03 (Post 3202)
I took out a loan for living room furniture when I was just starting out. Dumb, dumb, dumb is all I can say on this.

We did this, too... never occurred to me at the time that it may have been a wiser choice to buy used stuff and go for the new in a few years. In retrospect, it wasn't as bad as many other things would have been, though... like we didn't buy new cars, kitchen appliances, and so on. So maybe it was a nice balance after all. I really hate loans now. :)

Mynion 07-03-2007 10:48 AM

Re: Dumbest thing you ever took out a loan for.
 
When we bought our first home, the basement was not finished. We didn't really need the space so we left it alone. Then when our first child was born, we really, really needed the extra space. So, although we had to stretch our budget, we got a home equity loan to have the basement finished. We chose a good company, and the work was great, but the loan we got was terrible.

It was an adjustable rate loan, with automatic increases regardless of prime rate, so although we've been in a low-interest environment, the rate has continued to increase. Fortunately, we refinanced out of it to a fixed loan, but not after taking on considerable interest and penalties. This is what can happen when emotion overrides logic. Had I simply done the math/economics I never would've done it!

Good advisors are as much psychologists as anything else, and can many times help save you from yourself. Unfortunately, in this case, I talked to a good salesperson and not a good advisor.

BillR 07-05-2007 01:32 AM

Re: Dumbest thing you ever took out a loan for.
 
I took out a loan for furniture at 20% interest.

If I could go back I'd just sit on the floor - I do that now anyway.

Fred333 10-10-2007 11:27 AM

Re: Dumbest thing you ever took out a loan for.
 
I took it out for my ex-wifes car. Like I said ex-wife. Still paying on it while she drives it around.

GarySpicuzza 10-31-2007 05:30 PM

Re: Dumbest thing you ever took out a loan for.
 
Fred333 wrote:
Quote:

I took it out for my ex-wifes car. Like I said ex-wife. Still paying on it while she drives it around.
That's funny! :) ...and sad...:(

I can't recall who said it but some celebrity was asked if he'd ever remarry? He said, "Why bother, just go find a woman you don't like and buy her a house!":eek:

Hermes 11-02-2007 06:04 AM

Re: Dumbest thing you ever took out a loan for.
 
LMAO...very funny but at the same time...very true:).

happyguy 11-21-2007 06:42 PM

Re: Dumbest thing you ever took out a loan for.
 
I took out a loan in order to buy my firts computer. I wanted to use the computer to generate a part time income. Fortunately for me, I was able to repay the money without stress. The lesson I learnt is that it is good for you to take out a lona only and if ony you are sure it will generate enough money for you to pay back. :)

finsub 12-02-2007 05:07 AM

Re: Dumbest thing you ever took out a loan for.
 
the dumbest loan I've taken is to cover another loan taken in the past - this is not recommended at all! check your loan rates and quotes - it is the most important thing, no?

ao1058 12-18-2007 11:00 PM

Re: Dumbest thing you ever took out a loan for.
 
sub-prime loan







just kidding.

layla17 12-20-2007 11:50 AM

Re: Dumbest thing you ever took out a loan for.
 
I would have to say my worst idea for a loan was when I bought a brand new car a few years back. I still have the car and I'm almost done paying it off, but it's been a huge financial burden.

Sanabanana 01-10-2008 01:11 AM

Re: Dumbest thing you ever took out a loan for.
 
I have never taken loan. lol

cabbage753 02-14-2008 12:42 AM

Re: Dumbest thing you ever took out a loan for.
 
i have only ever had good dealing as i have used the same finance company for all my needs and they are small enough to know who i am and big enough to be competitive. contact leigh at renown financial services

ericajones80 02-15-2008 03:29 PM

Re: Dumbest thing you ever took out a loan for.
 
took out a loan to pay off gov't fines...ugh

BillCollector 03-10-2008 12:32 AM

Re: Dumbest thing you ever took out a loan for.
 
the dumbest thing i ever took out a loan for is a guitar.
I had never played and after playing guitar hero for about a month decided i wanted to play for real. So i went to the Willis music in the local mall and seen their 'financing available' sign and went a little overboard. I spent $800 on guitar, case, and a few small extras. It was 36% interest which was not pointed out when i was signing. but i ended up paying it off early and in total spent over $1100.

maat55 04-06-2008 01:46 PM

Re: Dumbest thing you ever took out a loan for.
 
I borrowed 3000 once to invest in the comodities market, I lost all but 300 of it. Somethings you learn the hard way.

jeff 04-07-2008 07:37 PM

Re: Dumbest thing you ever took out a loan for.
 
Yes...Funny and sad Mr GarySpicuzza...Good Luck Friends

natescashmoney 05-15-2008 12:33 PM

Re: Dumbest thing you ever took out a loan for.
 
$4000 for sweet rims for my Grand Cherokee...20yrs old and bouncing at a nightclub. Sold them for 1K a couple of years later.

shahab6 05-22-2008 01:38 AM

Re: Dumbest thing you ever took out a loan for.
 
I once took out loan formy stereo

stockmarketreviews 05-22-2008 03:10 AM

Re: Dumbest thing you ever took out a loan for.
 
hmm i have never taken a loan

spencer24 05-22-2008 05:30 PM

Re: Dumbest thing you ever took out a loan for.
 
I avoid debt at all costs.

sahilmiddha 05-23-2008 04:08 AM

Re: Dumbest thing you ever took out a loan for.
 
i took out a loan for my room furniture, which is dumb for me.

jerrymind 08-19-2008 07:48 AM

Re: Dumbest thing you ever took out a loan for.
 
the dumbest loan I've taken is to cover another loan taken in the past - this is not recommended at all! check your loan rates and quotes - it is the most important thing to do before engaging in any kind off loan.

the dude 08-20-2008 02:24 AM

Re: Dumbest thing you ever took out a loan for.
 
would 5K on a credit card for a watch be a dumb idea?


... there were probably better ways to spend that money.

www.BalanceTransfer.cc 08-26-2008 09:05 AM

Re: Dumbest thing you ever took out a loan for.
 
I once borrowed money to buy a recliner which hurt my neck so bad that I had to give the thing away.

kjb516 09-26-2008 07:07 PM

Re: Dumbest thing you ever took out a loan for.
 
Quote:

Originally Posted by Fred333 (Post 4598)
I took it out for my ex-wifes car. Like I said ex-wife. Still paying on it while she drives it around.


Whew! I thought I was the only one who would write this.

Though I am no longer making the payments on her car. When she pushed for me to continue paying for her car loan, I threw out a veiled threat to go after half of her inheritance from her recently departed father (which I really did not want to do). The next day she was at the bank refinancing it into her name. I still have the pen she signed the loan documents with. My co-workers have been warned to never touch it since that pen is worth $18,000 to me. :D

P.S. The dumbest thing I ever took out a loan on was for (barely used) exercise equipment. I had the cash at the time, but went for the ZERO PERCENT loan. The balance eventually went onto a credit card which in turn was refinanced into my mortgage during the divorce.

30 years to pay off exercise equipment? DUMB DUMB DUMB...

sahota7 09-30-2008 02:53 PM

Re: Dumbest thing you ever took out a loan for.
 
I think I can win this, I took out a 10,000 loan in order to fund a CEMAP training course I took. Now this is silly because Cemap is no where near that cost! But silly me at a very young age didn't realise! Heads up to those wanting to learn cemap, spend 110 on the manuals from the FSA and thats all! Not 10,000. I laugh at that now, lucky for me its all paid off thanks to my investments.

rogerthert 10-29-2008 08:21 PM

Re: Dumbest thing you ever took out a loan for.
 
Wheew. does anyone post on this anymore? Well i found this post interesting, so I figured I would.

I've never taken out a loan per say, I'm only 22. But i have plenty of debt. If you count a high interest credit card some form of loan, then count me in.

I received a c/c when I was 20 and unemployed while in college. They gave me a 2,100 limit with a 24.9% interest rate. Within months I had spent about half of it, so what do you know, they gave me a credit line increase, and another, and another...By then, my stupidity had gotten me up to $3,400 in cc debt. And what do I have to show for the 3,400 I spent??

NOT A THING!!!

However, I threatend to cancel my card membership, so they gave me a decreased interest rate...Now i'm paying 17.9%...Not much better. Oh well, live and learn.

donnyg16 10-29-2008 09:41 PM

Re: Dumbest thing you ever took out a loan for.
 
I took a loan out to fix my car and I am mad that I did because I got a horrible interest rate.

rogerthert 10-29-2008 10:06 PM

Re: Dumbest thing you ever took out a loan for.
 
Quote:

Originally Posted by donnyg16 (Post 9529)
I took a loan out to fix my car and I am mad that I did because I got a horrible interest rate.

yep, they'll get ya. gotta understand/read the fine print. we've all done it! it's no fun.

bcsman 11-16-2008 05:46 PM

Re: Dumbest thing you ever took out a loan for.
 
I decided to take out a loan for a new big screen tv from Circuit City with the "90 days" no interest. Being sure of myself that I would pay off the loan within the 90 days. 4 years later I am still paying, and have since also purchased a newer technology Plasma television (with cash).
I have learned that buying technology through loans is not a good idea!

Thomas

bizzaro 01-25-2009 06:44 PM

Re: Dumbest thing you ever took out a loan for.
 
an engagement ring. i didnt want to pay the finance charges at the jeweler [another mistake going to a retail jeweler]. i took out the loan from the fed credit union i belonged to in the air force. and then the marriage died and i was still paying for the ring.
thankfully she gave it back and in a lesson to myself [however stupid it may seem to an outsider] , i pawned the ring for pennies and drank it up at the dive bar next to the pawn shop.
i could have sold it and paid the loan off. i could have sold it and did anything with the money. but instead i had 3 beers and several shots. not in misery of divorce, but in anticipation of freedom! :P

shahab6 02-09-2009 03:06 AM

Re: Dumbest thing you ever took out a loan for.
 
the dumbest loan I have taken out so far is for a car, expensive car that I can't afford.

bdsctx 02-09-2009 08:40 PM

Re: Dumbest thing you ever took out a loan for.
 
very funny but at the same time...very true

RobertD 02-20-2009 08:57 PM

Re: Dumbest thing you ever took out a loan for.
 
The dumbest thing I have ever borrowed for a car, but it was not the interest rate or payments that was the bad part, it was putting up with the lender.

You see in 1979 straight out of school (a $7490.00 shiny new 79 T'Bird) I had two choices to borrow the money 14% from the bank or 0% from my grand parents I took the zero percent. My grand mother got her money's worth by nagging me for the whole time. It was so bad that I cut all my spending for 10 months just so I could pay them back faster.

Money is not the only way it can hurt, that is why I am trying to get people to budget more.


AnthonyHoeffer 02-23-2009 08:27 PM

Re: Dumbest thing you ever took out a loan for.
 
I think I have most of you beat, me and my wife had to take out a loan for credit cards bills once.

I'm glad I got my life turned around since then. :p If you want to know how I did it please visit my site in my sig. I came to this forum to help others become debt free quick and easily because I know how it feels to be broke and feel like you're getting nowhere with your debt.

alpha_academic 02-25-2009 11:26 AM

Re: Dumbest thing you ever took out a loan for.
 
I think one of the dumbest things I have ever heard of was something using margin on their brokerage account to buy a stock of a single company. There is a lot of inherent risk on owning a single company, and using borrowed money to bet is not that smart.

ipreferamediumroast 12-01-2009 09:29 PM

Re: Dumbest thing you ever took out a loan for.
 
When I lived in Cleveland in the late 90s, the banks were offering loans for people to buy personal seat licenses to the new clevleand stadium. Sad!

littleroc02us 12-17-2009 11:45 AM

Re: Dumbest thing you ever took out a loan for.
 
Everyone.....


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