Most of us will never be able to pay cash for certain things, like a house or even a car. Many of us take took out loans to pay for college. However, there are some things you just shouldn’t borrow money in order to purchase.
Most of us have to plan quite a while in advance to take a trip lasting a week or more. Take this time to put away a little money each week or month so that when the time comes you can pay cash instead of financing your whole trip. It can take a lot longer than you think to pay off even a few thousand dollars you borrowed so you could take a week’s vacation.
Your Wedding Day
It is supposed to be one of the best days of your lives, but many don’t realize how expensive they can actually be. Start planning ahead and putting away money for the big day instead of starting out your new lives together in debt.
Home Electronics and Furniture
One of the easiest things to get credit to buy is furniture or electronics for your home. It seems that every store that sells these items is ready to give just about anyone a credit card to walk out of the store with something new. However the interest rates are usually through the roof. So do yourself a favor and save up for this purchase.
Similar to furniture and electronics, jewelry stores offer up great financiering offers to entice buyers into their store to buy something new. However those offers normally come with a catch. Miss a payment and you can end up paying higher interest on the entire purchase and not just what you have left. So it’s best to save up and pay with cash, but if you can’t then be sure to read all of the fine print of the financing offer.
It can be tough to delay purchasing something that you want right now. But fight the urge and save up the cash to buy any of these things. In some cases you will find you didn’t really need it and will end up saving the money for something else.