# Borrowing at 40% to buy a laptop



## SDMXTWO (3 Nov 2022)

I am looking to open an account with an online company to purchase an item for 1500€. I applied for an acc and got a 400€ credit. I am not working.

_"The annual percentage rate (APR) for this agreement is variable and is currently 39.9%. The borrowing rate is also 39.9% variable. Interest is calculated on the daily current balance and the compounded interest is applied to the account at the end of every monthly statement period. As a representative example, if you are given a credit limit of €350 and then use your new account to buy a single item for €200 and make the minimum payment each month of 10% (or €10 if greater), the total amount payable will be €256.77, spread over 22 payments."_

So...can someone work out what my repayments would be please on a purchase of 1500€. Thanks.


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## cremeegg (3 Nov 2022)

Too much.

Sorry to be flippant, but if they just gave you €400 credit, it is going to cost you dearly.


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## SDMXTWO (3 Nov 2022)

cremeegg said:


> Too much.
> 
> Sorry to be flippant, but if they just gave you €400 credit, it is going to cost you dearly.


I know it's going to be high, would you give a ballpark?


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## cremeegg (3 Nov 2022)

Well if €200 is €11.67 a month for 22 months, then €1,500 night be €88 a month for 22 months for a total of €1,926. 

Or another way, the average balance os will be €750 plus interest at 40% for 22 months is €550 so total €2,050, or €93 month for 22 months.

So not too far from €90 a month for 22 months and around €2,000 total repayments.

Note. These are very much approximations/guesses.


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## _OkGo_ (3 Nov 2022)

SDMXTWO said:


> So...can someone work out what my repayments would be please on a purchase of 1500€


This sounds like a credit card and not a loan so there won't be a fixed monthly payment. There is usually some minimum monthly payment required so really its up to you how much you pay above this. And the lower your monthly payment, the longer you are borrowing the money and the more interest you pay

At 39.9% it would be mad to borrow €1500 unless it is absolutely essential. Have you any other alternatives?

But if you are really intent on it, it would be easier to share the product you are actually considering to get better advice


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## SDMXTWO (3 Nov 2022)

cremeegg said:


> Well if €200 is €11.67 a month for 22 months, then €1,500 night be €88 a month for 22 months for a total of €1,926.
> 
> Or another way, the average balance os will be €750 plus interest at 40% for 22 months is €550 so total €2,050, or €93 month for 22 months.
> 
> ...


Well thanks for that, does not sound as bad as I thought at approx 250€ extra pa, am I correct on that?


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## SDMXTWO (3 Nov 2022)

_OkGo_ said:


> This sounds like a credit card and not a loan so there won't be a fixed monthly payment. There is usually some minimum monthly payment required so really its up to you how much you pay above this. And the lower your monthly payment, the longer you are borrowing the money and the more interest you pay
> 
> At 39.9% it would be mad to borrow €1500 unless it is absolutely essential. Have you any other alternatives?
> 
> But if you are really intent on it, it would be easier to share the product you are actually considering to get better advice


When someone say's 'mad' it's a warning. Company is VERY the new Littlewoods.


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## Sue Ellen (3 Nov 2022)

SDMXTWO said:


> I am not working.



Sorry to be so blunt but if you are not working and the way the cost of living is going at the moment it is a high financial commitment with such a dreadful interest rate.


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## vandriver (3 Nov 2022)

Sounds like a new laptop/no money scenario.
Note that very has inflated prices to begin with,then that eyewatering APR.
As has often been said ,it's very expensive to be poor.


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## ryaner (3 Nov 2022)

SDMXTWO said:


> _The borrowing rate is also 39.9% variable. _



Not even credit cards are this high. I didn't think this was even legal at this high a rate. 



			
				https://mabs.ie/blogs/buy-now-pay-later-mabs-investigates/ said:
			
		

> Since May 2022, all Buy Now Pay Later providers have to be authorised by the Central Bank of Ireland to operate here.
> ...
> Any company or provider of BNPL services are also subject to an interest rate cap of 23%.


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## Monbretia (3 Nov 2022)

Have you already got CU loans or an account there, they would be a cheaper alternative, anything would be a cheaper alternative!


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## SDMXTWO (3 Nov 2022)

Thanx for the replies, it is extortionate, it is a PC for graphics, was hoping to get back to some freelance work. As was said expensive being poor, not easy. I'll let it go.


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## _OkGo_ (3 Nov 2022)

SDMXTWO said:


> I am looking to open an account with an online company to purchase an item for 1500€. I applied for an acc and got a 400€ credit. I am not working


Are you sure this isn't a credit limit of €400? i.e. you will not be able to buy €1500 worth of goods on credit




SDMXTWO said:


> Thanx for the replies, it is extortionate, it is a PC for graphics, was hoping to get back to some freelance work.


While this is expensive, a loan to facilitate you earning an income is one of the few good reasons to borrow. A credit union loan or similar would be more suitable for you if you can get it. Or do you have any savings at all?

Maybe start a new thread with the specs of what you are looking for or need. You will almost definitely get it cheaper somewhere other than VERY. Or possibly buy a refurbished PC for much cheaper.


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## cremeegg (3 Nov 2022)

SDMXTWO said:


> Thanx for the replies, it is extortionate, it is a PC for graphics, was hoping to get back to some freelance work. As was said expensive being poor, not easy. I'll let it go.


While the cost of credit is very expensive, that is not really the question.

If a €2k pc will allow you to earn an income, it may be a very good buy. The fact that the €2k cost includes €500 interest charge is not really relevant to the decision. If you can get the loan cheaper do, but if the pc is worth €2k to you then don't let the cost of the credit put you off.


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## Pinoy adventure (3 Nov 2022)

€2,000 investment to earn an income is not bad depending on the  income potential


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## dubdub123 (3 Nov 2022)

I cant get the figures to fully line up. It states that you must pay 10% each month. If that is less than a tenner then minimum payment is 10 euro.

It seems that the payments decrease over time but could be pretty heavy at the start for larger loan. Also if the minimum isnt paid off, then further interest will accrue. This would be risky and a very high percentage of social welfare income.

Its also likely that the 1400 is over the odds as they know they have people over a barrel.

Try get any other type of income and spend time sourcing more affordable PC or laptop. 

Those rates are scandalous and while its well intentioned you could be in over your head. Social welfare would be approx 10k pa so 2k or more out of that is a huge hit.


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## SDMXTWO (3 Nov 2022)

dubdub123 said:


> I cant get the figures to fully line up. It states that you must pay 10% each month. If that is less than a tenner then minimum payment is 10 euro.
> 
> It seems that the payments decrease over time but could be pretty heavy at the start for larger loan. Also if the minimum isnt paid off, then further interest will accrue. This would be risky and a very high percentage of social welfare income.
> 
> ...


Huge hit. I'll keep you up to date on what happens.


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## Brendan Burgess (4 Nov 2022)

would this be of any help









						The 'It Makes Sense' Loan Scheme - The Irish League of Credit Unions
					

Credit Union




					www.creditunion.ie


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## Brendan Burgess (4 Nov 2022)

Guys

These rates are not "scandalous" or "extortionate". 

They are unsecured loans to people whose credit is impaired who can't get credit elsewhere.

The default rate must be huge. 

Brendan


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## ClubMan (4 Nov 2022)

ryaner said:


> Not even credit cards are this high. I didn't think this was even legal at this high a rate.


It's perfectly legal.





						Moneylender loans - CCPC Consumers
					

Moneylenders typically lend small amounts of money at a high rate of interest over a short period of time, which means the repayments are high.




					www.ccpc.ie
				





> Some shops that offer credit for furniture, electrical or other goods and some catalogue companies may be authorised as moneylenders. This is because they may charge over 23% APR. Under the Central Bank’s Code for Licensed Moneylenders, a moneylender must give you certain information before you take out a loan with them including fees, costs and interest. They must also explain that the loan has a high cost, if the loan has an APR (Annual percentage rate) of 23% or higher.


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## 24601 (4 Nov 2022)

Brendan Burgess said:


> Guys
> 
> These rates are not "scandalous" or "extortionate".
> 
> ...



A point that is often lost on people. Every time I hear the credit union sector or some charity coming out looking for moneylenders to be banned or significantly capped in the interest rates they charge they never offer an alternative solution. Most credit unions are not going to lend to the person that has to borrow at 40% APR, or whatever, as they will deem them too high a credit risk. So if a business can be profitable at 40% APR then leave them at it. Better to have a regulated FSP do it than dissident Republicans or drug dealers etc.


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## Horatio (4 Nov 2022)

I buy refurbished or used business laptops for my kids off









						Black Friday - Green IT
					

Great Offers on Laptops, PCs and Tablets




					www.greenit.ie
				




So far so good. They have high spec laptops and desktop machines at low cost. They have a finance option too. They have warranties too. Oh and black Friday is a coming round the bend...

No connection to this business other than as a satisfied punter.


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## SDMXTWO (4 Nov 2022)

Horatio said:


> I buy refurbished or used business laptops for my kids off
> 
> 
> 
> ...


Thanx, I had checked them out but I am Apple Mac based as all previous files, software etc is Mac based.


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## SDMXTWO (4 Nov 2022)

Brendan Burgess said:


> Guys
> 
> These rates are not "scandalous" or "extortionate".
> 
> ...


Just to be clear, My credit rating is fine and I have never defaulted in my life.


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## dubdub123 (4 Nov 2022)

Is there any possibility you can source some work in advance and obtain small deposits which you could use towards repayments,  before making the purchase? So you have some expected income before pushing the button on the purchase.

Do you need such a high spec mac or could you manage with lower spec for a while? Sell it later and upgrade as you build up. Or buy second hand monitor but new machine etc.. 

Part of the issue with this is the 10% payment really in that repayments are higher at the start when you may not any income from design and quite quickly building up more debt. 

Are there any other lenders where payments are evenly distributed?


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## Páid (4 Nov 2022)

If it were me, instead of buying a Mac straight away I would use one of these services and connect to it via a cheap pc/laptop/tablet.



			https://www.macincloud.com
		






						Home
					

We host virtual Mac OS X Servers and Desktops with affordable pricing. Check out our fully managed Xcode Development Desktop for rapid iOS development and hosted Xcode IDE/SDK.  Multiple Data Center locations for optimum connection.




					virtualmacosx.com
				




You could use it on a trial basis to see if it suits your needs before committing yourself to purchasing a Mac.


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## becky (4 Nov 2022)

_OkGo_ said:


> Are you sure this isn't a credit limit of €400? i.e. you will not be able to buy €1500 worth of goods on credit
> 
> 
> 
> ...


I needed to buy clothes from simplyb which was a little Woods company. I must have hit an incorrect button. Clothes arrived the following week and maybe 2 or weeks later I got my loan agreement. I was a credit limit of €300 so I presume its gone up to €400. I paid it in full in a shop with a pink till but the rates were very high. 

I agree the poster should put up a new thread asking the best way to buy a PC while looking for work.


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## AlbacoreA (4 Nov 2022)

cremeegg said:


> While the cost of credit is very expensive, that is not really the question.
> 
> If a €2k pc will allow you to earn an income, it may be a very good buy. The fact that the €2k cost includes €500 interest charge is not really relevant to the decision. If you can get the loan cheaper do, but if the pc is worth €2k to you then don't let the cost of the credit put you off.



Freelance graphics is hard business to make money at unless you are very good and have clients with deep pockets. 

But you don't need a 1500 PC to do graphics. At least not to get started. If in the future the PC becomes a bottleneck, then you could consider getting something better.


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## Brendan Burgess (4 Nov 2022)

SDMXTWO said:


> My credit rating is fine and I have never defaulted in my life.



Then a credit union or credit card might be better.


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## mathepac (4 Nov 2022)

There is at least one way to buy from VERY interest-free over 6 months.

The clock starts running once you place the order and VERY's version of 6 months is 6 x 4, 7-day weeks or 24 calendar weeks.

1,500 / 24 = 62.50 / week.  Can you afford 62.50/week with possibly no income other than social welfare payments? Pay it all off in time and there is no interest to pay. Compare prices on Apple's website and VERY's and 20/40 euro is the biggest premium VERY charge, sometimes they sell at exactly the same price, but VERY's product range is limited and there are no build-to-order systems.

I'm guessing at 1,500 maybe it's a 1,489 M1 Mac mini with 16GB RAM and 1TB SSD). Do you have all the software you'll need? What about monitors, keyboards, pointing devices, printers, external storage for backup, etc.   Will your software run on the ARM SOC or is it all compiled for Intel? You can use the Rosetta emulator but it can be slow with big programs (slow is a relative term here).

Maybe post a list of what you need and we'll give it a once-over if you think that would be helpful.

There's always this -> https://www.very.ie/apple-macbook-a...e-cpu-and-7-core-gpu-256gb-ssd/1600533403.prd


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## peemac (5 Nov 2022)

Remember that as well as VERY expensive credit that they do their best to get you to take, their prices are VERY expensive too.

For laptops try someplace like Green IT or refurbed.ie

GreenIT do payment via Humm who charge a VERY much lower interest rate.


Anyone getting VERY bored with the puns?


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## AlbacoreA (5 Nov 2022)

Very...


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## ABoyNamedSoup (8 Nov 2022)

Revolut loan? I'm not sure how they assess you but if you've a good credit history then it might be worth a look, the interest rates are decent.


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## ClubMan (8 Nov 2022)

ABoyNamedSoup said:


> Revolut loan? I'm not sure how they assess you but if you've a good credit history then it might be worth a look, the interest rates are decent.


Original poster is not working which probably puts the kibosh on any loan?


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## dubdub123 (28 Nov 2022)

SDMXTWO said:


> I am looking to open an account with an online company to purchase an item for 1500€. I applied for an acc and got a 400€ credit. I am not working.
> 
> _"The annual percentage rate (APR) for this agreement is variable and is currently 39.9%. The borrowing rate is also 39.9% variable. Interest is calculated on the daily current balance and the compounded interest is applied to the account at the end of every monthly statement period. As a representative example, if you are given a credit limit of €350 and then use your new account to buy a single item for €200 and make the minimum payment each month of 10% (or €10 if greater), the total amount payable will be €256.77, spread over 22 payments."_
> 
> So...can someone work out what my repayments would be please on a purchase of 1500€. Thanks.


@SDMXTWO 
I happened to see this information about loans aimed at those in receipt of social welfare. It may be limited regarding which credit unions are rolling this out, but this might be worthwhile to take a look. I havent looked to see if theres details of rates but normally this differs across credit unions. It mentions that if your money goes straight to post office that you can setup repayments via household benefits scheme. 

Some other contributors may have more info based on their own Credit Unions. 









						The 'It Makes Sense' Loan Scheme
					

The “It Makes Sense” loan scheme  is aimed at people in receipt of social welfare, particularly those who may have used or considered using the services of a moneylender.




					www.creditunion.ie


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## Brendan Burgess (28 Nov 2022)

dubdub123 said:


> I happened to see this information about loans aimed at those in receipt of social welfare.



Eh...






						Borrowing at 40% to buy a laptop
					

I am looking to open an account with an online company to purchase an item for 1500€. I applied for an acc and got a 400€ credit. I am not working.  "The annual percentage rate (APR) for this agreement is variable and is currently 39.9%. The borrowing rate is also 39.9% variable. Interest is...



					www.askaboutmoney.com


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## dubdub123 (28 Nov 2022)

Brendan Burgess said:


> Eh...
> 
> 
> 
> ...



OP had initially been looking at an option with v heavy interest rates and mentioned they are on social welfare. This CU loan may be an alternate option for them. Seems to be only available at certain credit unions and money can be taken out via household benefits scheme so much more difficult to go into arrears. This may be better solution that taking out loan via the retailer.


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## dubdub123 (29 Nov 2022)

dubdub123 said:


> OP had initially been looking at an option with v heavy interest rates and mentioned they are on social welfare. This CU loan may be an alternate option for them. Seems to be only available at certain credit unions and money can be taken out via household benefits scheme so much more difficult to go into arrears. This may be better solution that taking out loan via the retailer.


@Tickle not sure whats funny? Care to enlighten? Am i missing something regarding the CU loan?


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## Brendan Burgess (29 Nov 2022)

dubdub123 said:


> This CU loan may be an alternate option for them.



Follow the link I had in my post. 

Brendan


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## SDMXTWO (8 Dec 2022)

Brendan Burgess said:


> Then a credit union or credit card might be better.


Thanks Brendan, I got it sorted through CU and got a 6mth old preloved apple.


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## SDMXTWO (8 Dec 2022)

mathepac said:


> There is at least one way to buy from VERY interest-free over 6 months.
> 
> The clock starts running once you place the order and VERY's version of 6 months is 6 x 4, 7-day weeks or 24 calendar weeks.
> 
> ...


Bought from Apple UK 6 month old M1. Thnx


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## dubdub123 (8 Dec 2022)

SDMXTWO said:


> Thanks Brendan, I got it sorted through CU and got a 6mth old preloved apple.



Thats a great result, fair play!


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