There are a large numbers of stores that offer cards to customers so that they can buy from the store and pay the amount off at a later date. This can be a great way to balance your budget when things are tight but it is very important that you understand the debt that your store cards are putting you into and how much they may end up costing you.
Store Cards and Special Offers
Christmas is the prime selling season for many stores and to help you to be able to purchase the maximum amount many stores will offer you a store card at a great rate. In many cases the initial offer is very good but if you do not meet all the conditions then there can be a very expensive sting in these cards tail.
There are offers of discounts or rebates on purchases as high as twenty percent. This is a huge saving and the more you buy the bigger the saving is. The problem comes if you have not paid the amount off before then payment period commences. High interest rates claw back these savings and many people are stuck paying for their purchases long after they have been given away.
- You are signing up to a credit card
- Once special offers are finished you could be faced with high interest rates
- These offers are designed to encourage you to visit the store as often as possible
- The store card can only be used in the store unlike other credit cards
Store Card Tips
You can use this form of credit in a way that benefits you without falling into the traps that are ready to extract the most money from unwary people.
- The high interest rate means that you should always try to pay off these debts as quickly as possible.
- If you are using a store card for a special offer the pay it off as quickly as possible. You may be able to pay for the item using the store card and then go the service counter and pay out the amount straight away. This will ensure that you do not have to pay interest while still allowing you to get the full discount.
- Consider closing the card as soon as possible. The stores use tempting discounts and special offers to entice you to sign up. Once you have used the card to obtain the item you want then closing the card will end the temptation that you might feel every time you enter the store.
- Be careful when you are offered coupons for items. In many cases the large discount offered is because the item is old stock, discontinued or a poor seller. These coupons are designed to tempt you into the store with the idea of purchasing.
- Budget your purchases
- Do not give in to temptation
- Remember repayments
The Holiday Season and Store Cards
The peak season for store cards is the holiday season. Offers will stream in to any customer that they have identified so that they are more likely to use the store and to purchase a greater amount. It is a tough balancing act trying to be as generous as possible and not overspending.
Cards supplied by the store try to push you to spend more than your budgeted amount. Even just knowing that you have a large pool of available credit can subconsciously encourage you to buy more than you should.
The holiday season traditionally has many new and exciting things on display and it can be difficult to resist the hefty discounts and easy ability that a card gives you to purchase these items. It is important that you do not give into temptation but stay with your plans. It is a constant battle because there are always big better and more interesting items on display.
It is very easy to forget that for every purchase we make we have to pay back the amount. It is always a good idea to know what the repayments would be. This lets you know that by adding an extra $100 on to your card that you may well have to pay back $125 once the interest is added and it is fully paid off.
There is a tendency to buy and then worry about being able to make the payments. If you are already financially stretched then even adding a small amount of additional debt can make it difficult to make repayments on time.
These are very high interest rate credit cards that are only able to be used in a single store. This makes them something that you need to be very careful signing up for and very careful using. Unless you can pay them off immediately then you should consider then carefully before using them to obtain credit.