Shopping on credit is something more and more people are doing today. It affords you the opportunity to buy items you otherwise couldn't afford, and pay it off over time. However, people sometimes do not properly budget, they overspend, and they over extend their credit, which can cause more problems for them in the future, simply due to irresponsibility with online catalogue shopping.
These are a few tips to ensure you are safe, don't ruin your credit, and don't put yourself in a financial hole.
1. Set a budget Even if your credit limit is £5000, set a budget lower than this. Doing this not only helps limit your spending, but also makes you think twice as to what you have to buy, versus what you are buying on impulse. Further, it avoids the revolving credit and interest trap, and allows you to pay down your balance in less time.
2. Pay above the minimum due If you owe £30 per week, on a weekly catalogue purchase, pay £35 or more if you can avoid it. Doing this helps you pay off the total in less time, and allows you to reduce the interest burden which these catalogues carry. You will pay off your balance sooner, and won't simply be paying towards interest which is what most people do when they pay the minimum amount owed.
3. Pay when you can If you have a buy now, pay later credit card, set up to be paid monthly, if possible, pay sooner. If you have some extra cash at month's end, put it towards these payments. Doing this allows you to pay off the purchase sooner, and helps you reduce the overall burden on your credit lines.
Catalogue shopping can be beneficial, but being a responsible shopper is also important. So, setting budgets, setting limits (below what the catalogue offers you), and making sure you keep up with your payments, and pay above your minimum due, are all things which should be done by those who purchase on credit.
For more information on catalogue shopping, check out Justcatalogues. They provide a large collection of reviews of the top credit catalogues including what products they sell and what credit options they provide.
Monday, 30 March 2015