When the dream of the house bursts

Oops, so much new while I was writing...

- On the topic of discounts

I have still negotiated discounts at every furniture store. Only with certain brands it doesn’t work because the manufacturer forbids it. In those cases, I take blankets and pillows that I like for free instead. I know it differently that you can’t bargain in big furniture stores.

Yep, us too. Furniture store, kitchen debate after the final decision ("oh, you’re not financing after all, you should have said so right away"), MediaMarkt... my husband negotiates everything down. But I notice here: As long as the expensive frame is financed instead of bought upfront and price-performance oriented... yeah yeah, that’s how the economy thrives, but not morality.

But notice this: The main thing is the expensive frame, financed for that, instead of paying cash and being price-performance oriented... yeah yeah, that's how the economy thrives, not morality

It is also often the more convenient way. But when you consider it, you are absolutely right.

If the customer is in default, the claim, unless otherwise regulated internally, is assigned to a collection agency. (And surely no partial payment is made there, right?)

That would mean, apart from maybe one to three letters, on which reminder fees are charged that, in my opinion, easily cover the cost of the letter, and which are sent out nowadays automatically by machine, no one but the customer ends up bearing the costs in this business.

We sell claims at 25% of the nominal value. So that’s already a 75% discount.

In addition, there are ongoing costs for employees, rents, depreciation, and so on, which this business has never covered.

Your whole line of thinking is where the mistake lies...

But I note here: the main thing is the expensive frame, financed for that, instead of paying cash and focusing on price-performance... yeah yeah, that's how the economy thrives

The problem with this attitude you describe is that the economy only keeps thriving sustainably (not just a flash in the pan) if old debts are replaced by new ones. For example, if the Americans suddenly raised their private savings rate to the German level (aka everyone pays off their loans, fewer take out new ones), their domestic market would collapse. It is therefore also much less frowned upon to grant people credit there who would not get it under a different financial culture.

One can now debate what makes people happier. After the financial crisis, I somehow find the answer to that quite easy.

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Regarding 0% financing again:

The bank earns most on a fully repaid loan. There’s no getting around that. But where other models simply state an interest rate, here they babble about 0% (pure marketing speak), while often fees/insurance are charged, just under different names. In the end, it’s just a loan the bank profits from. And what the bank earns, you have less available yourself.

I lived in my first apartment for 10 months with a camping stove and cardboard boxes in the kitchen until I could buy my first kitchen outright.
Almost zero understanding among acquaintances: EVERYONE would have financed the kitchen at 0%. So you also have to swim against the tide if you want to act financially smart today. Where do we actually learn how to handle money?

Just like you, you wanted to hint at that subtly, didn't you!?

Coming at a OP who calls themselves "passive" and even struggles with a simple job change with the idea of professional self-employment has only one purpose: to show between the lines what a great shark YOU are.

You have your own thread where you could have been concrete to back up your self-presentation with some substance. Do that there and not here. Your handwaving is not a fine character trait.

If you can read, then read. Otherwise, don’t spout such nonsense.

By the way, I don’t recall saying I’m passive. I have life experience and the clarity that comes with it not to throw myself blindly and without preparation into the unknown. If the financial situation were different, maybe my permanent job wouldn’t be as important to me as it currently is. In comparison to others, I might come across as passive. But that only applies to decisions that change one’s life.

I’ve even been self-employed twice and would, in principle, do it again anytime, but the idea of what and the associated compatibility with the current situation must fit—and it currently doesn’t.

And before anyone starts wondering why I’m no longer self-employed: poor planning and too little experience would be the main reasons, I would say.

Where do we actually learn how to handle money?

Unfortunately not where the education of the young begins. With a lot of luck, depending on the profession, in vocational school.


Then, in the best case, debt collection earns stupidly and dizzily. 100 euros loan. The bank gets a 25% deduction, debt collection demands 100% + 25% processing fee note etc., so it earns 125 and has only paid 25. So in the best case. Yep, it's worth it.