How much will consumer’s spend?
(image by wikimedia)
Consumer Credit Loans and Installment Loans are playing the part of American heroes as people try to take advantage of door buster sales from yesterday’s Black Friday Advertisements. It will be interesting see how much will be spent by consumers this holiday season despite the economic downturn.
“Never be afraid to pass up a good deal”
That was the phrase I grew up with. It was sound advice, but not always the advice I wanted to here. The reasoning is that if you go around buying everything that is a “Good Deal”, you will end up broke trying to save money.
Nonetheless, it’s nothing short of incredible to see the deals out today. The question is it wise to take advantage of them? The average consumer is set on spending $702.03 this holiday season, 4.5% more than last year. How many are going to spend more than they can afford?
What Are You Spending on the Holidays?
Impulse buying is largely responsible for the amount consumers spend, and each holiday season it usually starts with today, Black Friday. Why? Because the advertised savings outweigh any reason for waiting. After all, why spend a thousand dollars on something tomorrow if you can get it for five hundred dollars today?
Mixing Reason with Savings
If you are set on buying that new fifty inch plasma high definition television, ask yourself if you were planning on buying it a week ago. If you weren’t then it is likely that you don’t need it as you had not planned on or perhaps entertained the idea of buying one before today. If the savings make it affordable to you then by all means, fulfill your fantasies, but if you find that you are going to place a real whopper of a balance on a credit card or have prepared for the day with installment loans, then you will want to consider your actions very carefully.
Careful Planning for Sure Savings
If purchasing the item for the savings, determine how much you are able to pay back each month to pay off the new transaction. Pay close attention as your savings will quickly erode away the longer it takes to pay off your debt. If you will only be able to pay the minimum balance on a thousand dollar purchase, you could be paying interest charges for almost thirteen years depending on the Annual Percentage Rate. This is not to your advantage!
If you are like me, Black Friday has fallen a little to close too the beginning of the month. This means that my monthly mortgage payment as well as the rest of my bills are competing for my wages. It’s not that I can’t afford the purchase, it’s just that I need to wait till my next payday which there isn’t time for.
A Possible solution…..
Payday Loans and Installment Loans to the Rescue!
Now, I always encourage the responsible use of money but I also promote money saving strategies. That television I made mention of above is the Panasonics 1080p, 50 inch Plasma, 85u, 30,000:1 contrast ratio, High definition television, and there is only one word for this baby and that is SWEEEEEEET! The original purchase price, $1999+Tax. OOUUCH!. Todays price however is only $899.00 for the early birds. Can you say “TWEET”!
A payday loan for $1000.00 would end up costing a consumer about $1150 to $1250 depending on your lender. It is only a two week loan which would’ve been fine for me as my middle of the month paycheck would be able cover where I fell short, even with installment loans.
Are you turning on the savings this year?
Doing The Math
Figuring my lender would have charged me towards the higher end of the scale for a payday loan, I would have spent approximately $1250. However, for me to wait until next payday would have cost the regular purchase price plus tax, which means I would be in for around $2200. The total savings then would have been about $950 which is TOTALLY SWEET!
There Is Always Next Year
These types of loans are the unsung heroes of each holiday season, allowing consumers to take advantage of holiday savings that they perhaps didn’t otherwise plan for.
Contrary to what I was told when I was younger, I’m afraid I passed up a good deal!
Maybe next time.
It’s true people can get of of hand on Black Friday, choosing presents over rent or mortgage. Payday Cash Man has some great advice on how to save money with a payday loan for those who cant pass up a great deal. Proper planning for such events is always the best idea though.