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If it's too good to be true ...
You've probably heard that cautionary phrase so many times you can finish it for us.
That may be because it offers a safe way to approach the world and stay out of trouble.
Now, with the holidays upon us, it's probably a phrase you'll want to keep top of mind, especially when you're confronted with these "opportunities" retailers and lenders may throw your way:
90-days same as cash. What a great way to buy that gift you haven't yet fully saved for, right? Wrong. Sure, if your savings is almost there, this could be a useful option. But if it's just a means to make a purchase you've got no business making, the consequences could be dire. Accumulated finance charges, double-digit interest rates and a payment that doesn't fit in your budget can quickly douse your holiday spirit.
5 years interest free. Have you ever asked yourself, "How can they do that?" Chances are you're giving up something in exchange. Are you now paying more for the goods or service? You'll also want to consider what happens if you miss a payment. Imagine missing payment number 29 and getting hit with hundreds or thousands of dollars in "back interest." So much for interest free.
Skip a payment. It seems like a generous offer your lender might make to get you through the holidays. But again, at what cost? Spending what you don't have and piling up additional interest or adding payments to the back end of your loan probably isn't a good idea. Instead, give yourself a gift by making that payment.
20% discount for opening a store credit card. Don't do it. First, it will likely cause your credit score to drop. And second, you'll now have more credit cards -- and more temptation to use them. What's worse, you could forget you did it and months later end up wondering why your credit score plummeted. (Yes, we actually know someone who did that). We'd opt for a cash spending spree instead and taking a pass on the "savings."
Are these options always too good to be true? We can't say for certain, but we do know they come with the potential for danger.
So, this year make sure you look before you leap -- into trouble.
@ SMSgt Minister Gerald A. Thomas Capt Christopher MuellerCOL Mikel J. BurroughsSgt Joe LaBrancheSSgt (Join to see)Capt Seid WaddellSrA Christopher Wright LTC Stephen F.PO2 Ed C. SFC(P) Hercules Lobo MSG Tom EarleyPVT James Strait Alan K. PO1 William "Chip" NagelSGT John " Mac " McConnellSSG Leo Bell SFC William Farrell LTC (Join to see) SPC Britanny *Winnie* Balthaser Maj Kim Patterson
You've probably heard that cautionary phrase so many times you can finish it for us.
That may be because it offers a safe way to approach the world and stay out of trouble.
Now, with the holidays upon us, it's probably a phrase you'll want to keep top of mind, especially when you're confronted with these "opportunities" retailers and lenders may throw your way:
90-days same as cash. What a great way to buy that gift you haven't yet fully saved for, right? Wrong. Sure, if your savings is almost there, this could be a useful option. But if it's just a means to make a purchase you've got no business making, the consequences could be dire. Accumulated finance charges, double-digit interest rates and a payment that doesn't fit in your budget can quickly douse your holiday spirit.
5 years interest free. Have you ever asked yourself, "How can they do that?" Chances are you're giving up something in exchange. Are you now paying more for the goods or service? You'll also want to consider what happens if you miss a payment. Imagine missing payment number 29 and getting hit with hundreds or thousands of dollars in "back interest." So much for interest free.
Skip a payment. It seems like a generous offer your lender might make to get you through the holidays. But again, at what cost? Spending what you don't have and piling up additional interest or adding payments to the back end of your loan probably isn't a good idea. Instead, give yourself a gift by making that payment.
20% discount for opening a store credit card. Don't do it. First, it will likely cause your credit score to drop. And second, you'll now have more credit cards -- and more temptation to use them. What's worse, you could forget you did it and months later end up wondering why your credit score plummeted. (Yes, we actually know someone who did that). We'd opt for a cash spending spree instead and taking a pass on the "savings."
Are these options always too good to be true? We can't say for certain, but we do know they come with the potential for danger.
So, this year make sure you look before you leap -- into trouble.
@ SMSgt Minister Gerald A. Thomas Capt Christopher MuellerCOL Mikel J. BurroughsSgt Joe LaBrancheSSgt (Join to see)Capt Seid WaddellSrA Christopher Wright LTC Stephen F.PO2 Ed C. SFC(P) Hercules Lobo MSG Tom EarleyPVT James Strait Alan K. PO1 William "Chip" NagelSGT John " Mac " McConnellSSG Leo Bell SFC William Farrell LTC (Join to see) SPC Britanny *Winnie* Balthaser Maj Kim Patterson
4 Can't-Miss Holiday Deals Worth Missing
Posted from military.com
Finance
Money
Benefits
Posted 8 y ago
Responses: 3
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SP5 Mark Kuzinski another thought provoking and necessary and timely reminder. Commercials and stores scream Buy Buy Buy. Paying attention to our spending can keep your family in your house and keep the heat on. I have to be my own steward and take this advice to heart, bad spending habits aren't just the young and foolish. It knocks on everyone's door until you say you are done and regain your focus. All ranks, all ages. Financial problems may be hitting Colonels, CWOs, Majors, Capts, LTs and all enlisted. Even Generals who retired long ago must live on a strict budget because of retirement pay calculated in yesterday's dollars, supplemented by social security. Don't let pride or embarrassment at a bad financial situation prevent you for asking for help. We don't ask for help, it is in our nature. But I have personally learned the value of asking for help. Illness was the catalyst in my case. Don't let Holiday Hype blind you to good decision making, either.
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I have been doing that with Ebay.....6 months free interest as long as you pay it before the 6 months. so far so good, just don't make a purchase you cannot pay off within 6 months.
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Maj Kim Patterson
Alan K. good rule of thumb; don't make a purchase you cannot pay off in six months (except a home and vehicle) Perhaps we need to add budgeting to basic training, it is a life skill every bit as important as physical conditioning.
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Thanks for sharing SP5 Mark Kuzinski it is great advice to "make sure you look before you leap -- into trouble" in terms of taking advantage of any deal or being duped into one.
SFC Joe S. Davis Jr., MSM, DSL LTC Stephen C. Capt Seid Waddell CW5 (Join to see) SFC William Farrell SSgt (Join to see) SGT (Join to see) SGT Forrest Stewart SPC (Join to see) SrA Christopher Wright
Maj William W. "Bill" Price Capt Tom Brown SMSgt Minister Gerald A. Thomas SSG James J. Palmer IV aka "JP4"SSgt Robert Marx TSgt Joe C. SGT Robert George PO2 Ed C.
SFC Joe S. Davis Jr., MSM, DSL LTC Stephen C. Capt Seid Waddell CW5 (Join to see) SFC William Farrell SSgt (Join to see) SGT (Join to see) SGT Forrest Stewart SPC (Join to see) SrA Christopher Wright
Maj William W. "Bill" Price Capt Tom Brown SMSgt Minister Gerald A. Thomas SSG James J. Palmer IV aka "JP4"SSgt Robert Marx TSgt Joe C. SGT Robert George PO2 Ed C.
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