One of the many obvious and effective marketing and selling scheme continuously used by department stores, electronic shops and appliance centers is baiting customers into buying their wares through installment payments. Credit card companies’ logos and supposed “easy installment plans” usually lures customers into buying things that they simply couldn’t afford.
Yes, if you cannot afford to pay for anything in cash and in full, and you have to make monthly payments for some items, it simply mean you cannot afford it right now.
Important and expensive purchases have to be planned. One needs the patience and perseverance to save up and then buy. That or you can buy something that costs lesser and more affordable– something that you can pay and use without breaking the bank.
There are alot of ways in saving for things you crave. You can gradually start with as little as P100/week to save then gradually increase your savings as you go along. The point is not to use payments as a way of deciding whether or not you can afford something. Just like major plans for example of buying a house. Considering buying one might take time. I wouldn’t pay more for a house in monthly payments than I would pay for monthly rent if I could help it. I’d rather rent, or buy the house in cash. I will by anything when I can afford it.
Not only does these installment traps made to make you feel you can afford to buy anything, but these actually will gradually change your mentality on how you acquire material possessions. This will not only break your financial health, but paying monthly bills will sometimes create unwanted and unnecessary stress on you and your family. Sometimes when calamity strikes, you might have really urgent need to use your credit card for cash advances and your monthly payments will prohibit you from using your credit.
Have you had experience using your credit card and charging purchases you wish you did not do? How many times have you succumb to charging for items you cannot afford and live to regret it several months after? Share your stories with me here at Frugal Living by using the contact form above or by making a comment below.
