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Follow Up

June 3rd, 2015 at 11:44 pm

So, I tried to talk to dh again last night about the catalogue. I explained that the interest rates are high (39%) and that I thought that we agreed that we hated the company? He likes the fact that he can pay his items up when he doesn't have the cash. I'm tired so I'm trying to think of the phrase, but it's one of those things: if he didn't order from the catalogue he would probably have the cash. A paradox?

He told me that he has over seventy pounds worth of rewards to use! Why didn't he use them to get himself a game? Well, a while ago, we were talking about getting the kids something from the catalogue with the rewards. I ordered J's birthday present using my rewards (so it was essentially free) and I was happy so I never mentioned it to him again. He told me that I could pick what I wanted to get him with his rewards.

It's dh's birthday in a few months. I brought up the subject last night too. I asked him what he wanted. He still wants to go to York. What's your back-up? A game. I told him to pick a game he would like if we can't get to York.

As for the catalogue, he said he would still want to order so he can keep his reward status (10% back on his minimum payment, excluding BNPL) I don't know how I'm going to change his way of thinking. Hey, dh, set up a blog on SA and see what everyone thinks of your debt? No?

I asked him to give me a list of his minimum payments, debt and interest rates so I can put the details on What's the Cost. He didn't seem that enthusiastic about it, but said he would do it. I guess I could find the details myself since he gets paper statements but I'd like him to do it himself.

The only thing that has changed about dh's attitude is that we're still in agreement that we're going to buy a new hoover (vacuum cleaner) next pay, I'm pretty sure our one is going to stop working soon. Although, dh also said he would have a look at it. I found one in Tesco and Asda that was about 40 GBP, that was their cheapest. It's probably not a good idea to get the basic one but I think it might be the start of a good habit: paying for things with CASH when they stop working/need replaced.

I forgot to add that dh noticed my BOS statement last week. He read the interest charge, and noticed one month was higher than the other. He wasn't happy, you should phone and get this sorted. If only the catalogue listed how much interest was being charged on each statement, but they don't.

15 Responses to “Follow Up”

  1. DecisiveParadox Says:

    LOL paradoxical? love it!
    I have read your blog for over 2 years.
    I appreciate your comment and love your updates as well.
    This long update is best. keep doing them.
    I hope you can get your partner on board. you work so hard and too see your money go up in interest is unfair. I know your job is harder because you cant control (not trying to sound bad) all the household spending, its hard when your trying to work with another person.
    you should put him on a cash only diet!!!
    Know I am hoping you get everything into a low interest loan and can enjoy your money more!!

  2. scottish girl Says:

    Wow two years! Thanks! I hope I get him on board soon. I'll try to do long updates more often Smile

  3. VS_ozgirl Says:

    The fact that he is motivated by earning the rewards is so annoying, because that's what the big lure is by the looks of it. Maybe an example of purchasing the vacuum cleaner in cash vs purchasing it through the catalog would be a good exercise. "If we pay cash it costs £xxxxx while if we buy one on the catalog it costs £xxxxx plus interest of £xxxxx and you earn rewards of £xxxx so you can take that off the total price" (xxxxx is whatever the dollar figure for each thing is). I imagine cash will win hands down. Then to take the example even further finish off with "for the price we pay for the catalog we can get the catalog plus this plus that", and that's why cash is king.
    The example will take a little while but it would be worth it. Good luck Smile

  4. scottish girl Says:

    It is annoying VS! Thanks Smile

  5. VS_ozgirl Says:

    Sorry I meant to write "for the price of buying on the catalog you can get the vacuum cleaner plus this plus that"

  6. creditcardfree Says:

    I'm sorry he doesn't understand yet. Did you get online at Littlewoods to show him how it works?

    Anytime you buy when you don't have cash it is always going to cost you more. (Exception 0% interest). You have to have the strength to squash the inner child that is demanding their wants right now, especially when there is an emergency. Your debt is the emergency. There is a fire burning right outside your bedroom, but it's being ignored. Buying something else is like lighting another match and throwing it out the window on the other side of your home.

    If the game was 10, but on BNPL it is 15. Would he have bought it today with cash for 15? Or does that seem overpriced? If so, why would you buy it like that? The BNPL is the worst possible way to make purchases. That extra 5 his is committing to spend on BNPL for the item (in my example) is money that could have gone to pay on your debt.

    I know you are learning together, so my comments aren't meant to be hurtful...only helpful to your future discussions. Cheering for your Sarah!

  7. scottish girl Says:

    No he would have refused to pay that in a shop because that's a "catalogue price". He's driving me crazy!

  8. MonkeyMama Says:

    I think VS nails it. He needs to see the math.

  9. CB in the City Says:

    Oh boy, the catalog company knows what it's doing and how to hook its victims, ahem, customers. Can you make him see that a 10% rebate doesn't help when there is a 39% interest rate? Highway robbery!

  10. bluesfemme Says:

    Yep, vs has it right. Can you add up how much he has spent the past year or two - and compare the total of the "bought price" of those items with what has been paid? If there's still a balance left, add what's been paid to the balance. I'm sure the difference will be shocking.

    He's falling for the "delay the pain" tactics the catalogues rely on. I know I felt deprived when my c/cards were at maximum, and every pay meant first paying to get under limit, then fees, and then interest and so I would buy something as a treat to feel better - but I was falling for their psychological trap. I wish you so much luck Sarah in dealing with this, as I think once he gets it and gets motivated by the falling balances you'll be unstoppable and your family's financial freedom becomes possible.

  11. scottish girl Says:

    I'd like to try that bluesfemme.
    CB I love the way you've explained it I'm going to try and use that line "you're only getting 10% back on something you're paying 39% interest for"

  12. scottish girl Says:

    Actually if this gets added on next year he won't get the reward for it. You don't get rewards on Bnpl items just items you pay for right now.

  13. My English Castle Says:

    How about adding up the catalogue interest and comparing it to the trip to York cost? If you didn't do X, you could have Y(ork)?

    Most money decisions are trade-offs, right? Seems like the games might be quick gratification--like when lots of eat chocolate, drink, shop, etc when we know we shouldn't. Delayed gratification is a hard thing to learn, but a big sign of maturity and self discipline.

    I hate to pry, but were his/are his parents spenders? Money habits often come from our families. I know my DH's do. And mine too.

  14. Kiki Says:

    I like CBs description and showing the cost of the interest versus a trip to york.

  15. scottish girl Says:

    @MEC: his parents divorced before he started high school, so I don't know much about his dad. I know he had bought a house but had gambling problems then it was repossessed. Dh's mum is a spender. She used to always buy from the shopping channels when she was in a management level job. I think she's withdrew from her pension too (I'm sure you can at age 55). I know dh couldn't get any catalogues when he lived at home because she had them all. I don't think she has savings. She got made redundant then used it for a new kitchen amongst other stuff.

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