Beware of the way we are sold to. 

Advertising professionals get paid a lot of money to influence our buying habits.  One way they do this is to make purchases appear affordable.

For example, in order to make a $25,000 car loan appear affordable, the advertisers and dealers break it down into monthly payments.  After all, $483 per month is WAY less than $25,000 right now… or is it?

Let's break down the payment plan:

Loan amount:  $25,000
Interest:  6%    
Term:  60 months
Payment:  $483

Total Payments:  $29,000

Total Interest:  $4,000

So, your $483 payment each month will cost you $4,000 more than paying the $25,000 straight out.  Let's see… $4,000 is actually 16% of $25,000!  Why is it 16% and not 6%?  Compound interest. 

If we go for a longer term, say six years, the monthly payments go down to $414, but the interest goes up to $5831!  That’s 23% of $25,000.

The same holds true with anything financed:  the plasma TV, the furniture, the timeshare, the new copier with all the bells and whistles.  When you understand what compound interest does to anything financed, you really need to step back and consider what you're actually putting yourself on the hook to pay by signing on the dotted line.  

Is it worth it?  That's for you to decide. 

Personally, I can think of a lot of other things I'd rather do with $4000 than hand it over to a finance company!