Fri 28th Sep, 2007
How Much Do Your Shoes Cost?
One of the most common methods of making a purchase is on a credit card or store card. Shopping is fun. It is one of the most popular methods of relaxation and amusement. There is nothing more fun for a woman than spending an afternoon with friends, browsing the shops, looking for a special pair of shoes or a dress.
Shopping alone is not a serious problem. It is easy to leave the £200 pair of shoes at the store, but shopping with friends can make it harder to use common sense.
Many people spend hundreds of pounds when they are shopping, buying clothing, shoes, and jewellery they may never wear, and do not need.
However, the purchase of a £200 pair of shoes will come back to haunt the buyer for a long time. When a purchase is made on a credit card, the interest is calculated until paid in full.
When the minimum payment is made each month the interest continues to be calculated until the entire £200 is paid off.
The credit cards go one step farther to increase their profits. The largest purchases are paid last. That means, a £200 pair of shoes may not be paid off for months, adding 25% to the capital yearly. It is very easy for that pair of shoes to cost £300, or more, before the final debt is paid off.
A single shopping spree can still be costing the shopper, in interest, a year later. To reduce debt and protect your credit rating, shoppers should budget their shopping, and try to keep the balance on their credit cards low. If you are still paying off shopping sprees long past, consider a debt consolidation loan. This type of loan is used to bring together store cards, credit cards and other bills under one umbrella, preferably at a low interest rate, with maximum payments each month to clear the debt quickly.