To Buy or Not to Buy

Posted by admin on January 10, 2010 · Leave a Comment

Your sofa set looks a mess, it has served the family well, the dogs and the kids. It is now looking aged and you toddler has been playing make beleive horses and circus tricks on it, the cushions have lost their bounce and the leather has started to rip.

You go online and check your bank account and there is no way you can afford the new three piece set, the feeling to get rid of the old one is starting to overwhelm you, its an eye soar, your guests must think you are broke…. the feelings of disgust with it grow each day.

Then you look in your wallet, there is your answer, your credit card…. you already have an unpaid balance on it, you decide you will swipe it and get that lovely white sofa set into your home.

So how much is tha sofa going to really cost, think about it, if you have an unpaid balance already on the card, the sofa can easily end up costing you double within a year, that is provided you clear the balance in a year.

So should you purchase the sofa…… the answer is a resounding no, unless you can clear the full balance first.

It is better to feel embarassed for a few more months than to induge in it. Lets face facts if you were living in a place where you did not have visitors you would not bother.

The lesson is, very often we get into unecessary debts to keep up perceived social status and credit card companies make a fortune from us, simply because of this sentiment we have. So just bear without it for a few more months. If you cannot buy the sofa for cash, or if you buy it on your credit card and cannot clear the full balance within the stipulated interest free period, do not purchase the sofa.

I would personally be happier to be in a freinds home with a broken sofa rather than my friend to be struggling with debts. Your true friends will appreciate your honesty and if you have a rich one, he might throw in the sofa for you. Friends generally appreciate friends who have disposable cash more than they would someone who has a nice sofa. A person with disposable cash is more likely to come out with you when you want to go out for dinner or for a drink or follow you on a short holiday. Cash is King…….