the worst things to purchase with credit

September 1st, 2011

The Worst Things to Purchase with Credit

America is in a terrible economic crisis because of our reliance on credit. According to Patrick Allen of CNBC, we could be headed towards another full on credit crisis. By purchasing things we cannot afford and living beyond our means, we have made America a more difficult place to make a living and will make it even harder for our children to live better lives than ours. Here are some things you should reconsider purchasing until you can fully afford them:

Necessities

While credit might seem like the most viable option for purchasing things you absolutely need, think again before you swipe that card. Do you really need to fill up your SUV’s tank to capacity, or will three quarters of a tank get you through until payday? By spending too much on things we think we need, it often leads to trouble when credit card payments are due. Take time to really evaluate the purchases you deem as necessities.

Make a list and stick to it when you go shopping, purchase store brands instead of name brands where you pay for the packaging instead of the content, and if you can’t afford something you think you need; sit down and make a list of all of the alternatives and options.

Clothing

All of the magazines we read encourage us to hightail to the mall and buy the latest fashions so we can make our husbands more attracted to us and garner the jealousy of our friends. If you stop to notice, every couple of weeks a new issue of the same magazine is published telling us that what we purchased last week is passé and new stores and specialty boutiques have the fashion remedies we need.

Step back and reconsider the basic principle of clothing: to provide warmth and comfort. The media limelight tries too hard to convince us we are not adequate unless purchasing; be wary of the pitfalls.

Technology

The same ideas that clothing companies tell us apply to purchasing technology with credit as well. Every week there is a new gadget on the market that performs more functions than the one you currently own. By purchasing these electronic gizmos with credit you are ensuring that you will be paying a lot of money over time for obsolete technology.

Impulse Purchases

While at the pharmacy there are tons of temptations staring us right in the face. You may think that purchasing a pack of gum with your medications is an innocent move, but what if that means another $8 a month towards your credit card you can’t pay off right away? Your single pack of gum for each visit can raise your interest rates and keep you from eliminating your debt for an even longer period of time.

By taking the correct precautions and practicing discretionary spending, you can live your life without the bothersome burden of debt looming over your shoulder.

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One Response to “The Worst Things to Purchase with Credit”

  1. Some things I do to avoid purchasing on impulse: I don’t keep my credit card on my wallet. I leave my cards at home if I am going out with friends or hanging out on the mall. Lastly, before making any purchase that is not on my shopping list, I ask myself do I need the item and will be using it NOW or I simply want to have it.

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