A friend of mine sent me a link to a video clip from a recent Saturday Night Live show which had one of those fake commercials that seem real. You know the ones I’m talking about. Usually right after the opening skit. In recent years, the commercials are probably the funnier things they do, but I digress. The “commercial” was a promotion for a new book called “Don’t Buy Stuff You Can’t Afford”. It was obviously aimed at the people who seem to find themselves buried in credit card debt all the time.
While a very funny skit, the point rings true loud and clear, don’t buy stuff you can’t afford, or another way of putting it: save the money up, before you make the purchase! One thing a lot of people don’t understand is, all the work you did to find the best deal in town is blown when you finance the purchase on your credit card.
Credit cards are great tools, and necessary for purchasing airline tickets, rental cars, and booking hotel rooms and cruises, but if you don’t have the money sitting in your checking or money market account to pay the monthly credit card bill when it arrives, you will be slapped with some nasty interest charges. It is not a coincidence that in these economically challenging times for American families, an old-fashioned way of paying for things at department stores is making a comeback: layaway plans. People without credit or those wanting to cut the cord to their destructive credit card use, are purchasing items on a store payment plan. When the item is paid in full, you can pick it up and take it home. Simple as that.
So take a lesson from the comics at SNL, watch the clip and Don\’t Buy Stuff You Can\’t Afford! Suzy Orman must love this one!