Posted on: Friday, August 18, 2006
A shopping game plan will keep debt at bay
By Julie Rehm
McClatchy-Tribune News Service
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Charging is the fast track to debt.
Gannett News Service
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You walk into the store to buy a couple of things but wind up purchasing a cart full. Sometimes you score some true bargains — things you need at a good price. But often you just sigh and wonder, "What possessed me to buy all this stuff?"
The occasional unplanned purchase probably won't wreck your budget. But consumers who regularly buy on impulse, especially if they pay with credit cards, can dig themselves deeper into debt.
How to avoid impulse shopping? "The only thing you can do is walk away," says Philip Kay, a counselor with Credit Counseling Centers of America.
"Make sure you need what you want to buy and can afford what you want to buy," Kay says. "Be able to pay it off within a month and not get into a credit card problem."
WHAT TO DO
Use a shopping list every time you shop.
Stick with cash or debit cards so you don't spend money you don't have.
Read weekly sales circulars so you can stock up on items you regularly use at a good price.
Delay purchases, especially of big-ticket items. If you miss the big sale, there will be another. Or you might decide you don't really want the item.
Ask yourself whether you truly want the latest (fill in the blank) or just feel entitled to it because "everyone else" has it.
Keep in mind that the hot new electronic item will keep getting cheaper. And better.
Make sure you have space in the refrigerator, freezer, cupboard or closet for your purchases. Bargains should never create clutter.
DON'T
Shop when you're hungry, especially for groceries. Hunger and fatigue cloud your judgment.
Shop as a hobby.
Buy things you don't need just because they're on sale or you have a coupon.
Buy more of something than you can use before it goes bad, even at a bargain-basement price.
Overstock your inventory. They may be dirt cheap, but how many white shirts or black turtlenecks do you really need?
Wander into store departments where you don't need anything.
Be lured by a sale price if you must pay for the item with a credit card. Once you factor in interest, the savings may not be so great.
Sources: www.stretcher.com, www.californiaonline.com, www.phillyburbs.com
