Have you ever seen those TV commercials and at the end they make the statement “90 days, same as cash”? How about those commercials that tell you that if you’ll purchase with them and put it on credit you’ll pay no interest until who-knows-when? Millions of people fall for both of those scenarios every day.
Here’s the conversation you need to have – either with yourself (if you’re the one buying) or with your good friend (if they’re the one buying). 90 days is NOT the same as cash! These businesses are just that – in business to make money. Businesses come up with these creative ways for people to buy items so they can attach all sorts of fees and interest charges when people don’t pay on time. On average, 88% of the 90-days-same-as-cash deals convert to debt!
Did you catch that last part? Nearly 9 out of every 10 people who buy under the guise of “90-days-same-as-cash” default on their payments and that new Bedroom suite becomes more debt. If you don’t believe me, just try to buy something and tell the clerk, “I waited for 90 days before coming in to buy, cause you claim that 90 days is the same as cash. I want my ______ (you fill in the blank) FREE!”
Some stores make lots of money by preying off people’s willingness to buy these “deals.” Don’t allow that into your life! And don’t allow friends to get hooked either. We should start a campaign with the slogan “friends don’t let friends fall for 90-days-same-as-cash”!
Here’s a new way to purchase: save money, pay for something with cash, and be done with it. If it’s a big purchase, wait 24 hours and consult your spouse/friend/pastor/boss before buying. That will keep you from impulse buying and paying stupid tax.
What would happen if we paid for stuff when we bought it? Debt would almost disappear. Can you imagine?
It’s just one of the conversations you need to have.