This was the first Black Friday in a decade we didn’t rise before the crack of dawn to stand in line for the best deals of the years. I almost felt a loss of saving money! But buying things cheaper doesn’t always mean you are saving money. There are a lot of legitimately good deals around the holidays, but sometimes there are deals that are a little too good to be true.
Our friends at USAA have pointed out four “Deals” that you should miss this holiday season:
- 90-days same as cash. What a great way to buy that gift you haven’t yet fully saved for, right? Wrong. Sure, if your savings is almost there this could be a useful option. But if it’s just a means to make a purchase you’ve got no business making, the consequences could be dire. Accumulated finance charges, double-digit interest rates and a payment that doesn’t fit in your budget can quickly douse your holiday spirit.
- 5 years interest free. Have you ever asked yourself, “How can they do that?” Chances are you’re giving up something in exchange. Are you now paying more for the goods or service? You’ll also want to consider what happens if you miss a payment. Imagine missing payment number 29 and getting hit with hundreds or thousands of dollars in “back interest.” So much for interest free.
- Skip a payment. It seems like a generous offer your lender might make to get you through the holidays. But again, at what cost? Spending what you don’t have and piling up additional interest or adding payments to the back end of your loan probably isn’t a good idea. Instead, give yourself a gift by making that payment.
- 20% discount for opening a store credit card. Don’t to it. First, it will likely cause your credit score to drop. And second, you’ll now have more credit cards — and more temptation to use them. What’s worse, you could forget you did it and months later end up wondering why your credit score plummeted. (Yes, we actually know someone who did that). We’d opt for a cash spending spree instead and taking a pass on the “savings.”