Every time you get ready to buy something on time (using credit) think, “If I have to buy something on time, I can’t afford it.” If you cannot purchase the item without using credit and paying the additional cost of the interest, you are probably indicating that you do not have the willpower to delay gratification until you save the money to pay for the product or service outright. Most of these kinds of purchases are because we want something right now. We can’t wait. The advertisements have done their work on us. Peer pressures push us. We “want” the new thing so much that we think of it as a “need.”. If we only had this stuff right now, we would be happy and would look so good and would be so admired. But how cool is it to go into debt to buy something you don’t really need? That is simply being led by business propaganda that you will be happier the more you consume.
The idea “If you have to buy something on credit, you can’t afford it.” is designed to make us stop and think before we act. There are always alternatives to going into debt and adding the emotional stress and strain to your life of having to make those payments, those damn incessant payments. Is the enjoyment of the product or service purchased on credit worth more than the added stress to your budget and to your mental health until you finally finish the payments sometime in the distant future? Have you taken the time to calculate the real cost of the purchase with the added interest? Will you really be as happy with your purchase as you thought you would be after 4 weeks 6 months? Are you looking forward to making those payments for two years?
There are probably some instances and under some circumstances when buying using credit is advisable but there aren’t many as far as I can tell. What do you think?