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Considering store cards. Part 2
Author: Richard Norfolk
Don't forget that the inability to pay can hit you like a bolt
from the blue. You may be jogging along happily, buying the items that you feel that you need and paying ( medical insurance ) off your store card at the due time - then WHAM - redundancy, illness, family problems, loss of earnings. Through no fault of your own you cannot pay the amount due.
It all sounds like terrible 'doom and gloom', but treat it as a ( secured loans ) warning not to go in for any financial commitment until you have thoroughly studied your options.
Don't be swayed by short-term benefits which lead you into long term problems. Are they really benefits, or is the store price higher than the price charged by their ( home insurance quotes ) competitors? Ignore 'pie in the sky' rewards which you may never qualify for.
Unless you have reserve 'rainy day' money which can be accessed instantly to cover payments due, you may well have to face interest charges if you fall behind with payments because your income drops - just the time when extra costs are the last thing you need.
However, be prepared to sign up to a store card which offers a good discount on an item which you were going to buy anyway, but control the situation. If necessary you must take your discount and ensure that you make all your payments when due. Then cut your store card up, to avoid being dragged into the deep water of debt.
If you want to have credit then look closely at conventional ( life insurance quotations ) credit cards and especially at the interest charges they make.
Consider, consider, consider. It's your money - use it wisely.
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