Category: Credit

Is it worth getting credit on catalogue purchases?

When you buy things from catalogues, whether you have a physical book or buy online, you will usually have the option of paying all at once or over a number of months or weeks. This normally comes with a cost with the longer that you take to pay, the more expensive the items are. It is worth considering whether you are happy with doing this.

It can be easy to think that because paying weekly or monthly for items is easier that it will be well worth doing, but actually it could cost a lot more money. It is worth calculating the difference in cost to see how much more you will be paying. If there is no extra cost, then you might think that it is fine. However, you may find that you can buy the items cheaper elsewhere as the cost of the interest free credit is added into the items so that the seller can cover the cost of the risk of someone not making the repayments. So make sure that you do your research first and buy from the place that has the best price as you could save a significant amount of money.

When you borrow money you should always think hard about it. Whether you are buying things which offer credit or getting out a loan, there is still risk and there are still things that you should think about. The cost of the loan, is a big factor and as mentioned above it is worth calculating how much that cost will be. Consider whether you think that the item you are buying is still worth having at that cost. If you think so then you should also think about the repayments and how you will manage them. Consider where you will get the money from each month or week to make the payments. Consider what you will have to go without in order to afford it. Also think about what will happen if for some reason you have extra expenses to pay or you have less income. You will still need to find the money for the repayments and you may find that you have to go without essentials instead.

It can be really easy to think that paying for something over a longer term is a simple and good way to make it more affordable. It is wise though to think it through first. Find out how much extra you are paying for being able to do this and think about whether you think it is worth paying this extra money. Then you need to think about how you will manage the repayments. It may seem easier than paying a lump sum, but you will need to find the money to cover each payment. It could be much better to save up for the item and wait a bit and then buy it. This way you do not have to worry about making repayments, if you cannot afford to save then you will just have to wait a bit longer. It will also be cheaper this way and you might even gain some interest on the savings while you are saving up.

It may seem a lot of fuss to be making about someone buying a jumper or some undies, but it could make a significant difference to your finances or even your life. If you can save money every time you buy clothing or other catalogue items then these savings will really add up. Getting into debt is not fun and if you find repayments hard then you could face charges and fines and you may even be sent to court. It is unlikely but it is still a possibility and the stress of this could be huge and have a massive impact on your life. It could therefore be worth just saving up rather than getting into debt so that you know that your future will be happy. If you think that you will not be able to save up, then see whether there are ways that you can make more money, things that you can sell or alternatives to buying those items so that you can still avoid getting into this situation.