Recently bought a £2650 bike on a 0% Barclaycard.

I use debt to buy nice things that I can afford but can’t save for….

Because I know myself, I know I could never save that money to buy a bike. I just can’t do it.

I don’t like having debt so I pay it off quick. Paying 400-450 a month off it and I’ve cut the card up.

I could never save £450 a month. Too tempting to spend. But debt looms and needs to go.

On the plus side I’ve got a very good credit score.

In a word – no

I couldn’t justify risking the family’s lifestyle just so that I could have better bikes.
I too run motorbikes as well as road and MTBs and I pay for it with any money I can make trading in old motorcycle bits and shifting stuff I no longer need and doing the odd ‘job on the side’
Keeping money in the bank and using 0% cards doesn’t make sense to me, there’s not enough to be gained to warrant the risk.
My life got turned upside down – out of the blue – recently when I was made redundant after 20 years, I’d very glad that I don’t owe anyone any money and all I have to find is our living expenses in order to survive.

I used to run quite a few loans and credit cards but I eventually learned that they always cost a lot more than you initially thought they would.
Online purchases go on a credit card but I always make a payment to the card before leaving the PC

Bike wise, I’m probably – comparatively – materially poor having not made any big purchases for over a year, only stuff like tubes and brakes etc. but I don’t feel in anyway lacking or needing.

For full builds and frames i use 0%finance. Works well for me as i hardly notice the payments going out.

I fund it with prize money.
So far I’ve bought some grips (not lock on).

0% finance here, meant I could get the bike I wanted. Just make sure you can afford the repayments first and then off you go

Both of us being self employed teaches you a lot about money management, you never know where the next money is coming from so you look after what you’ve got.

Fortunately work has been good of late and because of not buying unnecessary things, just because, we have a nice little fund to get what we want. We use cash back credit cards, but only if we can afford to pay it off at the end of the month, I’d NEVER risk buying something on the basis that we ‘should’ be able to afford it in a few months time.

Cold callers get a little confused when they ring up to offer to switch our credit to a better rate, then I tell them we have no outstanding debt at all, I like to sleep at night by knowing if it all goes tits up then I only have to find the Mortgage and Food money.

I just bought a new bike in frame and parts form. Done on 0% credit card for 15 months, I got 20% of the banshee frame and similar on the forks for not taking them in shop credit and the rest from various online shops. I will the pay it of over the next 12 months roughly. Could only have afforded about 1500 up front but this way I have been able to spend twice as much and pay no interest

I purchased my full sus through one of those 0% interest schemes and paid it off over a year, always making sure I had money set aside. I would have had to wait a year to save the cash up so personally I got an extra year’s worth of riding, but generally I’m adverse to using credit and I only use a credit card for the added purchase protection it gives you.

I am massively in debt……..to the wife.

I would have had to wait a year to save the cash up so personally I got an extra year’s worth of riding,

But surely, you’ll lose that year at the end of the bike’s life? So gained nothing other than getting to use it earlier than you would have?

Cash generally, not because I am wealthy but because I am not good enough to justify an expensive bike.

I am a bit scared of credit, I think because my dad was so bad with money and had every card and loan known to mankind.

Overtime pays for bikes and bits for me.
If I want or need some new bike bling then I do a coupon more overtime shifts.
At the moment my work are paying triple time for some overtime shifts so it doesn’t take many of them to pay for my toys!

I’ve bought two frames on 0% through BlackHorse(?) finance.

A 2004 Heckler frame

and

A 2007(?) Blur 4X frame

Both were <1k and I kept both for 2yrs.

No way at all would I even consider buying a 3k bike or 2k frame on credit or not. I know some people do this and its the highlight/treat for them. Thats fine. Everyones different, I just don’t think bike frames (or bikes) are ‘worth’ what companies are asking for them now.

Maybe in the future I might buy a 2k road bike but 2k road bikes aren’t bashed/covered in grit weekly etc.

3k is too much to subject to such conditions in the UK. Thats where the appeal of a secondhand Orange frame etc appeals.

As a rule I buy great condition/lightly used – let someone else take the hit. Much like people who must buy a new car.

baked beans and XTR here

Have just purchased my road bike on 0% interest. I can afford it in my monthly budget and it will be commuting 3 days out of 5 to work so saves me petrol money.

Don’t really see the issue as long as you have done the math and can afford the payment each month.

The bike and car are the only things I have on credit.

Good point – my road bike is on finance (1k).

I think the benefits of cycling outweigh having all that excess energy which would only be funnelled into fighting, hookers and narcotics.

Credit? Not a hope. The only thing I owe money on is my mortgage, and that’s set up such that I’d have to be really, truly, irreconcilably stupid to end up in a position where we defaulted on it. Everything else gets paid for up front, cars, bikes, whatever. If I can’t actually afford it, I don’t buy it. I don’t actually have a credit card. I absolutely detest the feeling of owing money to somebody, and I also really dislike the idea of “renting” something rather than actually owning it.

Bike stuff? I’m lucky enough to have pretty decent cash flow (partly because I don’t have anything tied up paying off outstanding debt!), so I usually wait for deals to appear or secondhand stuff to crop up, and can then just purchase outright. Having a bunch of mates in the industry is also nice….

Never bought bikes on credit, never will either.

I did once buy a boat on credit but then it was £33k of racing sex machine, raced for 4 years then sold it for £24k so not a huge loss in yachting terms. Thrashed the pants off it, won stuff too, glamour and girls flooded in.
I think that’s worth it.

Bikes though, you gotta be kidding 😆

But as our economy grows more 0% deals will be released (I am seeing it already where I work) and we’ll all be offered 0% balance tfrs and easy credit within 2 years.

Be careful out there and only buy what you can sell a kidney for 😆

I look at life the following way, I can either save up for a year for something (now at the age I don’t need to save), or I can have something now (when I want it).
in my life plan, I am still going to spend the same amount of money. and also remember….money is only any good when it is being spent, it is what it is supposed to do. earn it, spend it, earn some more….. 8)

Credit – no.

Perfectly happy on cheap/old stuff and don’t run anything I can’t afford to replace. I can’t be doing with worrying about the replacement cost or even worse – outstanding debt on something I often crash.

I’ve bought a few bikes on credit (including my first rockhopper, I simply handed over 6 post-dated cheques – probably ages me a bit), but always had enough money to pay the lump sum if I really really needed to.

Did once buy a cheap-ish commuter on a credit card only to have it nicked before the bill arrived. Paying that one was a bit gutting.

The bike market is in a strange place at the moment.

There is a great selection of “beginner” bikes that are sub £700 (and even sub £500), however there seems to be a lack of improvement in terms of value and performance in the £1000 – £1500 category for complete bikes.

This is the category that people are most likely to buy on finance. They’ve bought their first £500 hardtail and have really enjoyed themselves. Their skill has risen and so has the terrain they are riding. However they are still “of this world” in terms of cash flow so aren’t prepared to spend over £2000 pounds on a bike. Lets not lose grounding in reality here – 90% of people would consider anything over £700 silly for a pushbike.

So you start to look at the “lower midrange market” – as we’ve been conditioned to call it. It seems at this slice of the market development has stalled slightly. The low end has had great progress last few years in terms of value, and the high end is always surging on in terms of performance. But the midrange? Worst of both worlds.

You can get OEM kit cheaper, or better performing kit at the same price. Not everyone want’s to build a bike from parts though.

I would like to see more progress in offering kit for this bracket personally. More options with better performance. Obviously all manufacturers need to continue the highend for the race circuit, but it would be great to see a manufacturer like Spesh or Giant really get on this segment and push their range in this price bracket to really offer stonking value.

Then, maybe i’ll buy a bike on finance. But whilst Giant’s 27.5 4 complete comes in at £1299 but only offers Suntour forks, a Giant branded shock and FSA cranks – i’m out.

I can either save up for a year for something (now at the age I don’t need to save), or I can have something now (when I want it).

Or you can spend the money you saved last year, now. Then spend the next year saving for whatever you’ll need/want in a years time…

Either way ends up being the same result, – you get what you want. The difference is, doing it on credit leaves you in debt to The Man(tm), and if The Man(tm) decides he wants to bend you over, he damn well will, because he’s The Man(tm)

but if you have the cash sat in the bank to pay the man, it makes it a no brainer…..use someone elses money and let your grow a bit more.

ton I drive a £1600 car. I could go out and buy a much much better one cash but as theres a bubble building, cash in bank is king.

I’d never use credit to stretch myself beyond what I can afford, but I don’t see any problem with using credit to get something straight away instead of saving and waiting.
For example my MTB needed replacing last year. I could have spent the summer spending cash repairing my old bike whilst saving for a new bike, instead I bought a new bike on 0% and got to enjoy it for the whole summer.

I have about 18k of debt, mostly on credit cards, built up over the past 3/4 years. I’d say about 5k of that is 4 bikes (FS, HT, Wife’s HIT, Road), an Islabike, and all the paraphenalia. The rest of it is life and having 2 babies in quick succession.

Bikes have had a profound effect on my happiness I feel (only been riding for 3 years), and the ghoulish spectre of debt is worth it.

I have 2 years guaranteed left on my current job (5 year contracts), and I am confident that when my wife goes back to work in the next few months, we will clear the debt within that time.

Sure, debt is bad, but if you keep on top of it, making sure that you are getting the best deal for your debt interest rate wise, it can be a useful tool. Lord knows the governments of the world use it. Would love to have the extra cash not to have to borrow but, like many young adults, I want to enjoy myself while I’m still young, just my 2p.

They keep offering me credit, though, and I’m already over 50% of my earnings in the hole…

Or you can spend the money you saved last year, now. Then spend the next year saving for whatever you’ll need/want in a years time…

See now, I do this. A big chink of my salary is commission, so I save it during the year only using some of it if necessary IMO wisely living off my basic. In January, I pay all the big items (car/house insurance for example, mortgage contribution if possible) leaving enough left for the rest of the years big ticket items where I can anticipate them – for example the annual family holiday.

Whilst those are paid and budget for I continue to save for the following year. This years been good so far work wise, so there may be enough in the “pot” for a new bike next year – however I’ve yet to find one I want to replace mine.

I do though pay all those things on CCardn and immediately pay them off – with that and my work expenses going through the same card we get £100’s of nectar points every year to spend – effectively free money.

Being a high anxiety person I couldn’t live like rentachimp above without worrying myself to a frenzy and suspect I’m lucky that I can manage not to.

I like how people are so anti debt, “I’ve never had a credit card, I won’t use 0% finance” but then have a mortgage. I know there is very little choice, but debt isn’t bad. Bad debt is bad. The kind where you can’t afford to repay it. Or you have no will power and must spend the entire credit limit.

I put every bit of online bike purchase on a credit card. 1 for the protection if it doesn’t turn up, 2 for the warranty issues that may arise. I’ve used the “not fit for purpose” route with a credit card when a manufacturer states lifetime warranty, then goes “ah, that was the life of the frame”. Anyway I digress.

I use 0% purchases and transfer rates on CCs. I owe some on a CC but I can clear it if needed. As mentioned above, cheaper credit is just around the corner, actually the APR war has begun. I’ve seen 33 months @0% on balance transfers and personal loans @ 4.1%. Another boom is waiting in the wings just in time for the GE.

You still don’t own the goods though. What’s if you break it? You still have to pay the balance of the item you can’t use. If that’s a bike, that would be eyewateringly difficult for me.

I have to say I’m a non credit person myself. But this seems no different to busting a bike for bought for cash. The cots of the loss is roughly the same

Unless your making a more general point that you should buy bikes that you can comfortably afford so you have money in reserve to fix the bike

I think that this excellent advice. I’d much rather I had one bike down the range and the spare cash for a repair, Rather than by maxt out with no options if something goes wrong

18k of debt on credit cards?

I have one child, a secondhand bike, a new 1k roadbike and a cheap car.

I owe £700 on a credit card. If I had 2k on a credit card I’d be worried sick.

I would only worry about my levels of debt if I were unable to afford to pay them back.

Weeksy – you sound like Gordon Brown

(Am paranoic about debt- we remotgaged recently to get much better deal but now i’m terrified cos we haven’t got the balance of over overpayments to fall back on :roll:)

Bought my first full susser on 0% – now with sprogs, wife mortgage etc I wouldn’t dare

I’m like Bigblackshed, tend to put virtually everything on a credit card, but usually clear it, or can clear it if required.

I think it’s bad the amount of credit folk have access to, at one point I had credit card limits roughly equivalent to 65% of my salary, now I have £23k credit limit.

That said, I’ve got a fairly small car loan on top of that which I’d struggle to clear without selling the car, but the rate’s really good, yes it costs me a bit more in the long run, life’s too short to worry about stuff like that! Since taking out the loan in January I’ve had two letters offering me to “increase” the loan (read double it) for the same rate as a guaranteed approval. Again, I think that’s bad, and can see how people easily get into trouble.

A lot depends on how you view and use credit. Being somewhat old-skool I might buy something on my credit card but pay it off in full when the statement arrives thus using the 0% interest period to my advantage having gained all of 0.5% / 12 interest on the sum in the meantime.

Credit is also useful for helping with short term cash-flow especially if a genuine emergency crops up: relative who lives abroad dies and you need to buy plane tickets get to the funeral sort of scenario.

Where credit is bad is using it to fund a lifestyle that you can’t sustain. Unfortunately a lot of people use it this way and even more unfortunately a lot of businesses rely on people doing this.

Where credit is bad is using it to fund a lifestyle that you can’t sustain

nail on the head,
mortgage paid, kids paying board, no bills other than weekly stuff, ie food, gas, water and stuff. never used a car.

I’m definately using credit to “augment my lifestyle”, and I’m loving every minute of it. 😆
We aren’t spending wildly either; it’s just household expenses are so high that we can’t break even on a single wage.

But seriously, it works out at about £5k a year over 4 years, and my wife has been off work for that long (college, kids, pregnancy etc), so once she’s earning, even on minimum wage, it’ll be paid off within 2 years.

My parents always had a loan going, so when I started working I did the same.

MTBs, Road bikes, bits, all on credit cards or loans. I had 3 motorbikes at one point! 2 worth 6k and a old scrapper to do up. I think a good 70% of my salary was paying for debt….

10 years after starting to work, I finally paid it all off this year and I’m now debt free (apart from the mortgage) and will never have a loan/finance/credit card again (unless an emergency comes up).

I’ve now got enough free cash that I bought my superlight frame, forks and all the extras to move bits from my Surly to the superlight with the just a month’s spare cash. I’m skint now until pay day, but my bike is awesome and I don’t owe a thing on it. 🙂 That’s a great feeling for someone who’s spent a lot of years in debt.

And yes, I worried a lot about writing off, or de-valuing anything I had finance on, to the point where stuff wasn’t getting used.

Moral of my boring story, don’t get started with debt if you don’t have any. You don’t “need” that super expensive flash bike all the magazines love…

Worth remembering that no credit is free, you’ll be paying more for the goods or collectively sufficient people will be defaulting and paying a exorbitant interest to make lending to the others profitable. Even CC transfer grace periods will be paid for by you lifetime value as a customer.
The people who lend money do it to make money and don’t often get heir sums wrong.

The biggest buzz ever [materialistically] was making the last payment needed to clear my mortgage.
Maybe it should have been first riding some of the amazing motorbikes I’ve owned? or some of the places I’ve been? but it was the mortgage by a long way.