Don’t let Black Friday push you further into the red

 

Every year it seems that the buyer’s frenzy of Black Friday and Christmas starts earlier, gets bigger and goes on for longer.

This year, it seems that we are using the excuse of not being able to celebrate the holidays last year as an excuse to start earlier and go bigger. This inevitably means that more money is spent and consumerism takes over.

But what happens when you have no disposable income to spend or you are already so far into the red? How do you ignore all the noise of Black Friday and avoid becoming embroiled in the spending excitement? How can you avoid consumer regret and stop yourself going further into the red come January?

We’ve come up with some top tips on how to avoid getting yourself further into the red this Black Friday…

We hope that these tips will help to avoid buyer’s remorse, especially as Which? has revealed that shoppers are rushed into making their Black Friday purchases and many live to regret it. This was based on a survey of 2000 members in September 2021. A high percentage also turn to credit or BNPL (Buy Now, Pay Later) schemes in order to pay for their purchases which is a red flag to whether they can really afford it.

What are Buy Now, Pay Later schemes?

BNPL is a form of credit whereby an agreement is set up between the consumer and the credit company for a purchase to be made but paid for at a later date. Terms of the schemes vary depending on who provides the credit. Some providers allow up to 30 days for repayment while others allow up to 12 months. Interest rates also vary across the board.

If you repay the purchase amount in full, within the required amount of time, then you will be subject to little or no interest. Those schemes that allow the repayments to be made over a longer period, could be subject to an interest rate.

As with all forms of credit, if repayments are missed then your credit score will be affected and interest will be added.

Our top Black Friday tips

Be mindful

• Really think about what you want to spend your cash on – do you really need that item? Would your lifestyle be less beneficial if you missed out on the deal? Have you coveted that item for ages or is it wanted on a whim because you have been seduced by the savings?
• Ask yourself whether you would buy the item if the Black Friday discount was not applied

Research

• Do not jump at the first marketed discount that you see. Shop around, do your research. You may find that the item is cheaper elsewhere or may have added extras tagged on, such as free delivery or free insurance, etc

Affordability

• Ask yourself two questions: 1. Do you really need that item and 2. Can you afford it? If either answer is ‘no’ then step away.
• Stick to a budget that you set
• Try to avoid using credit to purchase your items. Credit cards can be a good idea to purchase things on for buyer’s protection reasons, however they should only be used if you can afford the repayments!
• Avoid BNPL schemes. They are so tempting but you have to remember that they are a form of credit

If you find yourself in a position where you are in debt and struggling to make your repayments, then contact us to see if we can provide a solution to help.