Christmas Credit is a Critical Mistake
December 4, 2007
Today, as I went through my mail, I was expecting bills. Instead, I got more than one offer for Christmas money. I should be excited, right? Wrong!
Credit card companies and financial institutions are not being generous lenders. Running a business, they count on you and me jumping at the chance to write checks on our credit cards, or applying for cash to go shopping. After all, how many people pull out the plastic to purchase a gift? LOTS!
In excitement and the desire to buy the perfect presents, Christmas creditors are counting on you to believe the advance is critical, and not a critical mistake. They hope you will see it as free money today, and not think about the bill that will be in the same mailbox next month.
Christmas credit is a critical mistake because it is anything but free money. In fact, the same-as-cash credit checks usually have an additional cash advance fee, on top of the high interest rates. By the time you can afford to pay the bill, you can conceivably pay two or three times more than the actual cost of your Christmas gifts.
If you do not watch out for your financial stability, who will? Bankers do not have your financial well-being at heart. They are making money at your expense-literally! They want you to rack up a credit bill that will take a year to pay off. Depending on the credit advance, you will be paying between 12-22% interest, and any applicable service fees.
So, do not be tempted to accept the plethora of credit offers that come to your mailbox this holiday season. File the paperwork right where it belongs- the trash! You may still wish you had a little extra money this December, but in January you will be very proud of yourself for staying within your holiday budget. Personally, I am already glad my trash can is a little fuller tonight.
Have do you resist the temptation to spend money on credit, especially during the holidays?
All posts by Tina