We are being bombarded with ads and sales pitches from stores every day because Christmas is coming up soon. With so many tempting things to buy, it's easy to get into debt. Now is the time to choose the right kind of credit for our budgets.
"Mistletoe, Wine, and Christmas Time" How often have you already heard this, and it's only November? I'm sure there are a few, but since Christmas seems to come earlier each year, we will all feel the need to buy gifts and food early. We end up spending more than we should because of this, though. This is because the stores are telling us to buy our gifts now because they are decorated for Christmas and playing Christmas music. By the time December comes, we will have already bought our gifts. We would have spent more during the two months that stores have been decorated for Christmas.
Not everything is bah! Humbug.
Christmas is a special time of year, and I love seeing the kids' faces light up when they open their gifts on Christmas morning. This makes all the planning and spending worth it for the day.
But that doesn't mean it's free, and in some cases it's more expensive than people can afford. Even with all the decorations and parties, Christmas can be hard on a lot of people. Instead of letting their kids and family down, they may turn to credit cards and store cards, which offer the promise of money.
Don't get me wrong, both credit cards and store cards can be helpful. This is true, but only if you use them in a way that helps you get the most out of them. If you're trying to decide between the two, my only suggestion is that you choose the credit card over the store card.
We all want to enjoy this time of year, so making sure you have everything you need and save money so you don't go into too much debt will make the holidays even more fun. So, I hope that telling you some of the pros and cons of credit cards and store cards will go a long way toward helping you make the right choices.
First, what's good about credit cards:
- Better interest rates than store credit cards.
There are a lot of offers out there that let you pay no interest for a while.
- Will keep your gifts safe after you buy them.
You can buy something now and pay for it later, but you only have to pay back what you've already spent.
Now, the bad things:
- They can be hard on your wallet, especially if you pay late or go over your credit limit.
- Can make you spend more than you can afford to pay back, which means that your account will be charged interest.
What's good about the store card:
As soon as you get the card, you can use them.
- Your first discount, which is usually 10% off your first purchase, will save you money right away.
Disadvantages:
- Interest rates that are much higher than those of a credit card. Some of them can be as high as 30%.
If you don't pay them off at the end of each month, they can put you in debt quickly.
- Sold to customers by people who don't know anything about what they're selling.
