Poll Finds More Than Half Americans Take Out Loans To Buy iGadgets

Tyler Durden's picture

Ahead of Wednesday's mega-launch of the all-singing, all-dancing, all-happy-ending-providing (rumor) iPhone 5, the stunning reality is that a recent poll (via CouponCodes4U) found that 81% of consumers admitted they could not keep up with the latest and greatest from Apple - and worse still that 51% used credit to buy one of the must-have iDevices.

As The Street notes, the findings of the survey show "the crazy lengths people will go to be the first person to have the latest iPhone of iPad" and the pollster was "shocked and very surprised about how many Americans freely admit that they are willing to spend their way into debt by buying Apple gadgets that they simply cannot afford."

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Abraxas's picture

"51% used credit to buy one of the must-have iDevices"

Natural selection at work.

malikai's picture

Marx called it best: The fetishization of commodities. He was right - about that.

LawsofPhysics's picture

Long repo men and repo markets.

knukles's picture

Lizard Lick Towing
Booyah!

Thomas's picture

That number may include credit cards. I do that, but then pay my bills.

AldousHuxley's picture

iGadgets are <$1000

 

how about iMansions for $500,000+ on a loan?

that's called mortgage.

 

who do you know buys homes for cash besides some old Asian immigrants.

Mark Carney's picture

LOL this is worse the even I imagined.

 

Does this not scream "CULT"??????

 

nah, must just be me.

icanhasbailout's picture

loans for iphones is a sucker's deal

 

kidneys are where it's at

samcontrol's picture

in south america we ALL buy our homes in cash.

ShrNfr's picture

Yep, ever watch the strange look people give you when you hand them 5 Franklins for something? They think you are trying to pass funny bunny money. Not withstanding the fact that it was counterfieted by the Fed, it sort of isn't. I told the last person I handed a Franklin to to think of it as a $10 bill from 1970. That is all they are worth these days.

Pool Shark's picture

 

 

Funny how everyone panics when you hand them a $100, but nobody looks twice when you give tham a stack of $20's.

Like you, when I hand over a $100, I tell them: "It's the new $10."

 

[...and actually worth less than a $10 was in 1970...]

FEDbuster's picture

There is still "hope" for a trillion dollar FRN with Barry O's picture on it.  $16 trillion debt no problem, pocket money.

Pool Shark's picture

 

 

While on the subject of Apple...

Apparently they're enabling forced abortions in China:

http://www.insidermonkey.com/blog/apple-inc-aapl-enabling-forced-abortions-in-china-17893/

Agent P's picture

Do you carry a debt balance for anything?  If the answer is yes, then in reality you carry a debt balance for everything.  It doesn't matter if you use cash to buy iGadgets and groceries and debt to buy housing and cars or vice versa, you still end up with debt.  The only difference in how you allocate it is the impact on your cost of debt.

I too pay off my credit card balance each month, but I'm still very much in debt (mortgage), and as long as I continue to make purchases vs. pay down debt with disposable income, I making those purchases on credit regardless of the means of payment.  Most people don't see it this way, but they should.

Umh's picture

What if inflation is more than the rate on your mortgage?

Agent P's picture

Provided your assets hold value or appreciate with inflation (definitely not the case with an iPhone and sadly not the case with housing over the past five years), you get a positive net real return and should be happy...and your banker should get fired.  However, this was not the point of my post. 

My point was all items purchased are effectively purchased on credit if you carry any sort of debt balance.  I've made this argument many times on ZH with respect to government welfare programs (i.e., there is little difference in the government giving someone money to buy groceries so they can use their cash to buy an iPhone vs. the government just giving them money to buy an iPhone).  Same principle applies to the use of cash and debt to fund purchases...it doesn't matter (other than cost) what specific items you allocate the debt to, at the end of the day you had to borrow because your spending exceeded your sources of income.

CrashisOptimistic's picture

I own no apple toys.

I use a credit card to buy everything.  And pay it off end of month.

I wonder if the survey addresses this.  That's not "credit".  That's an interest free 20 day loan.

john39's picture

yeah, but you are still feeding the vampire banks, who earn fees from the retailers...  go cash, starve the beast.

Mark Carney's picture

with my AMEX, I pay $50 annual fee, but oh man I rack up the airmiles rewards (and pay off CC every month of course)

 

in 3 years I have had free flights for me and Mrs. Carney to Cancun twice and now Kuaui in December....and will have enough for flights to Carribean again for next year...I use the system right.

UGrev's picture

and you'll get a free junk groping by the TSA when you go on your trips.. what a bargain!

Agent P's picture

It's Kauai (actually Kaua'i)...damn haole!  Just kidding.  Enjoy your trip, it's beautiful there.

drivenZ's picture

exactly, who buys a $500 electronic device with cash? if you can afford it, it would be foolish to pay cash. 

max2205's picture

right, I don't pay cash for ANYTHING, movies, food, gas, ect

Overfed's picture

WTF are you talking about? If you can afford it, pay cash. If you can't afford to buy it with cash, you can't afford to buy it.

drivenZ's picture

WTF are you talking about? If you can afford it, and pay off the Credit Card in full every month then it's free $.  Why would I not put a big purchase like that on my credit card where i get cash back and points? which nearly every CC does.   

Dr. Kenneth Noisewater's picture

Do they pay their card off every month but use credit to get points/cashback?

 

Cuz the cost of credit card transactions is baked into all retail prices at this point, and unless a merchant offers a cash discount I use credit cards and just pay them off to claw those pennies back.  On my Costco card that's 9-10 cents per gallon these days for those rare times I actually buy gas (like, for my motorcycle).

holdbuysell's picture

Queue the subprime iBS.

iBS = iGadget Backed Security

/sarc

 

resurger's picture

It will soon end on teh Feds balance sheet

Cult_of_Reason's picture

Don’t worry; keep on spending, Bernanke can also print new credit card statements showing zero balance.

BLOTTO's picture

So dont be surprised now why the masses in NA aren't taking $1,800 (which they dont have anyway) out of the bank account to buy a 1oz gold coin or 50+ ounces of silver...

to the masses - that^ is even more crazy - that is INSANE!...then taking out a loan - for the fuckin latest iGadget.

The brainwashing and conditioning is HEAVY on the massess via the illuminati controlled mass media...the illusion is on mindless grazers - not for the independent thinkers.

 

Again, to re-confirm your position -ask yourself this:

Is the joke and illusion and the TRILLIONS of dollars spent on us 1-2% independent thinkers that hold PMs?

or is it on the 98-99% easy prey, not capable of independent thinking, mindless zombies - that take out loans to buy the latest gadget?

Cult_of_Reason's picture

I am not convinced that the holders of PMs will be any better when the shit hits the fan (for example, Executive Order 6102, in particular "10 years imprisonment").

http://upload.wikimedia.org/wikipedia/commons/a/a1/Executive_Order_6102.jpg

And according to inflation calculator, $10K fine in 1933 is equivalent to $176K fine in 2012.

http://www.usinflationcalculator.com/

Uber Vandal's picture

Which would be easier to confiscate:

PM's that people may, or most likely do not have.

Or:

Just declare a bank holiday, and confiscate IRAs, 401(k), 403(B), or just Corzine everything else.

To make things more interesting for people holding physical cash, simply revert it back to ink on cotton by rescinding the Legal Tender status and issuing a new monetary unit of exchange with a very short to no grace period to exchange the old currency for new.

Lets go one step further.

If private property, such as gold is confiscated by goon squads going door to door, you are going to have much, much larger problems than just losing money.

jumbo maverick's picture

No I think the goon squads are going to have much larger problems. In the past maybe not but now this time its different.
I don't think I'm the only one that has dawn a line in the sand.

Cult_of_Reason's picture

You probably do not know it, but your name is already on their hit list (with estimates of how much gold you are having). If you ignore the executive order and do not bring your gold, you will get a knock on your door from a SWAT team at 5 am.

Google it for more information:

Starting on January 1st in 2012, U.S. federal law will require coin and bullion dealers to report to the Internal Revenue Service all gold and silver coin purchases and sales greater than $600.

ObamaCare to enforce IRS reporting of gold and silver coin sales over $600.

 

 

Pool Shark's picture

 

 

BUZZZZZ!!!

Sorry Cult; thank you for playing, but we do have some nice consolation prizes waiting backstage for you...

http://www.smartonmoney.com/president-obama-signs-repeal-of-1099-tax-reporting-provision-of-health-care-plan/

Cult_of_Reason's picture

Yes, Obama agreed to repeal the $600 requirement, after he was explained that the government still can get you, gold buyers, on the hit list using current laws.

 

Any purchase---not just gold---involving more than $10,000 must be reported to the IRS by the vendor within 15 days of the transaction date.

And if you buy less than $10,000 of gold, there is another way for the government to track you -- Form 1099.

The Internal Revenue Service (IRS) classifies gold, coins, silver, gems and stamps investment property, which is a capital asset. The sum gained or lost in a sale or trade is a capital gain or loss on the tax forms.
 
A taxpayer must keep records of all investments, along with the dates and purchase price. These records are the basis for the determination of loss or gain.
 
At the time the gold is traded or sold, it's subject to a capital gains tax (28 percent if the taxpayer has held it for more than a year).

BTW, if you have been buying gold/silver coins and you are not reporting these purchases to the IRS, you might get a knock on your door as soon as tomorrow morning. We already live in a police state and many of you "gold bugs" do not even know it (you were sold a safety myth by the gold sellers).

Overfed's picture

Oooh. I better remember to write off all of that silver I lost while I was canoeing on Crater Lake. And the guns, too.

 

Cult_of_Reason's picture

And hope a judge will believe you and not the government, or he/she will not issue a search warrant.

Cult_of_Reason's picture

Re: "confiscate IRAs, 401(k), 403(B)"

Why would the government confiscate something that the government can print (IRAs, 401(k), 403 (K) are denominated in USD)?

If the government confiscates anything, your gold will be the first on the list to confiscate "for the greater good of the nation".

 

docj's picture

Well, to be honest, I use plastic to buy damn-near everything - pay it off in full at the end of the billing cycle, though.

But if the crux of the story - the people are literally going into hoc for the latest iCrap - is true, then it's just another indiciation that We. Are. So. Totally. Freaking. Screwed.

Miffed Microbiologist's picture

Me too dcj. After doing it for 4 years we all went to Europe and back on the frequent flyer miles for free. Those credit cards are hard to resist. Trick is is to use responsibly which, unfortunately, many do not.

Miffed:-)

resurger's picture

Green AAPL's Bitchez!

knukles's picture

Enough anecdotal evidence soon becomes a statistic worthy of seasonal adjustment, manipulation and redaction.

 

Booyah!

Lost Wages's picture

My wife has a stack of cash she is saving for an iPad. I wish she would buy me a Volcano Vaporizer instead. :(

azzhatter's picture

I've heard Corzine has the market cornered on vaporizers