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November 30, 2006
Stop Emotional Spending
We are well under way in holiday shopping frenzy 2006. Yes, the Christmas shopping season is upon us. Most people are off to the malls spending on pure emotion.
While intentions are good and the feelings of getting something special for your loved ones causes our logical mind to turn off and the emotional mind shifts into hyper-drive.
It is estimated that 60% of shoppers this year will make their holiday purchases on credit cards. The thought being: “I have a low interest card; I can afford the minimum payment”.
What’s the problem with this?
The problem is the buy now and pay later mentality. You must be warned though that if you find yourself in a position that you can’t make your payment, even for a single month, that you will be in for a very unpleasant surprise regarding your interest rate.
Before you rack your plastic to the limit thinking that you will simply make the minimum payments in the new year, think and plan carefully to make sure you truly can.
Here is why making your payments is important, especially with low interest credit cards, should you miss a single payment your interest rate could skyrocket! Quite often rates can soar as high as 30%.
Check the fine print on your credit card statement to find the terms and conditions for your current rate or call your credit card company.
Remember the holidays are meant to be enjoyed with friends and family. The holidays are not to be a time of debt and looming bankruptcy, use caution this holiday season for a happier 2007!
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