Three Questions to Ask Yourself before Using your Credit Card for a Sale
Posted on 2/4/2010 - Filed under Credit Card News
Recent news stories have reminded us of the relationship between sales and credit cards. Sometimes when we see a sale we immediately think of how much we’ll save, rather than the amount of money we’ll be spending. And if you swipe your credit card without thinking, you may end up paying a great deal of cash in the long run.
The good news is that you can still use credit cards to purchase items on sale. The key is to make sure the purchase is a wise one. Here are three questions to ask yourself before you buy something on sale with your credit card.
How much will it really cost me? If you can pay off the balance at the end of the month, it really won’t cost you anything. If, however, you’re going to be paying off the balance for months to come, you could end up shelling out hundreds of dollars in interest. Not cool.
Do I need it? Seeing a great deal can make you want to get it, even if it’s just for the sake of saving so much money. Rather than grabbing the item and sprinting toward the cash register, think about what you really need. If you have time, leave the store and take a walk, or even sleep on it. When you’ve removed yourself from the scene, you’ll be able to think more clearly. This will help you decide whether or not the item is really essential.
What are the other pros and cons? If you’re debating about whether or not to get the purchase, make a list of the pros and cons involved. This is especially important if the item on sale is a big one. Look at your life and think about what you want, both in the short and long term. Make a list of priorities; then study how the item would fit into them.
And remember, credit cards are a great tool when used properly. So don’t ditch all of your plastic, but do focus on using it wisely to reap the most rewards.
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