'Skipping Is Not Child's Play Anymore' is a warning that banks and merchants are not inviting you to a game that you will win. You may receive offers often to let you 'skip' a payment for the holiday, or when school starts, or due to weather storms or other reasons. You are tricked into thinking they are doing you a favor - WRONG !
You may be enticed by offers to make large new purchases because you don't have to make a payment for twelve months or more. Skipping payments is a marketing lure. Buyer beware !
What creditors do is double dip on those sales. Once you sign a contract, the creditor sells the contract and collects money. Then in twelve months when your payments start, he collects money again - from you. That my friend, is what you call a super good sale ...for the merchant !
The payments aren't really skipped - full interest continue to run. So, in reality, the payment is just put off with interest added until the end of the loan. Even worse, lenders often impose a fee on those who use the skipped-payment option. The result is that the consumer pays extra interest plus a fee for doing so. Don't assume that any 'skip-a-payment' offer is a good deal without reading the fine print. Remember, "The large print giveth, and the small print taketh away !"
If you have made a large purchase and the payments don't start for 12 months, divide the amount due WITHOUT INTEREST by eleven. Make eleven monthly payments with NO INTEREST and by the twelth month your purchase is paid in full. Your purchase is paid for BEFORE interest charges start. That technique is much like lay-a-way, except you have the use of your purchased merchandise while making the payments. Interest is most of your debt and if you use this method you can purchase INTEREST FREE saving large amounts of money !
It's all about you using your money in the most efficient and profitable way, instead of allowing merchants to use it to their raise their profits. Keep in mind marketing gurus do not work overtime coming up with creative new strategies for the merchant to lose money. Like in contracts, 'He who makes the offer, offers the best deal for himself'.
Spectrum Resources' mission is to teach you how to live INSIDE your income. Specializing in debt, credit and home ownership issues. Contact us by phone: (863) 967-0660 or email:
SpectrumResources@tampabay.rr.com . Please put our blog links in your favorites and come back often: http://www.moneysavingtips.polkvoice.com/ http://www.spectrumresources.wordpress.com/ or http://www.financialeducationandoptions.blogspot.com/
To help us help other with financial literacy, please make tax exempt contributions to:
SRDC 2014 Brentwood Dr. Auburndale FL 33823 or use the online check processor:
Posts
No comments:
Post a Comment