What To Buy On Finance & What Not To

These days there are so many different ways to get finance that it seems like the easiest way to get a lot of things and then pay it all back later. But we really should be aware of what things it is a good idea to buy on finance and what things are not really such a great idea. As it is so easy to get approved on financial products we need to be careful we are not getting into avoidable debt that can cause us a lot of financial problems later on if we are not that careful.

White Goods 

Generally speaking there are a lot of finance options available for cookers, fridges and freezers etc. so it’s something that’s very accessible. If you have an appliance unexpectedly break on you then it’s going to have to be replaced one way or the other. So rather than buy 2nd hand goods finance could be a good option but shop around and be aware that not all retailers will offer you the best deal. There are many suppliers and retailers of house-hold goods that are able to offer finance to pretty much any consumer but at extortionate rates, we have seen companies charging ridiculous APRs of up to 94% which just cannot be considered reasonable for anyone. 

Nights Out 

Going for a night out can be costly and it’s often very tempting to put the drinks on a credit card f you are a bit short which is pretty tempting but this can lead to a bad pattern of behaviour and cause you issues. There is an even more worrying trend of people using high interest payday loans for social occasions and with a record level of complaints they are a method of borrowing that should be avoided at all costs, this is thankfully a method of borrowing that seems to be on the downturn thankfully, with government legislation the excessive interest rates are not quite so bad as they were and as a result we even saw the biggest offender in this category Wonga, go out of  business. 

Cars 

Now getting car finance is a classic method of car finance and is almost as old as car dealerships themselves so there are plenty of options available and as a car is a necessity for so many of us it is not a bad idea in principle. So have a shop around and find a deal that works for you and if it doesn’t put you in financial difficulty. There are so many different ways of financing a car now as well with the increase in leasing and also lease to buy schemes being more and more the norm when it comes to vehicle purchase, then it is worth exploring these options thoroughly. 

Holidays 

You can get a holiday deal online these days pretty easily online and many of these operators offer finance options and this is a good way of paying up a holiday if you can get a zero interest deal. If this will allow you to have your holiday paid off before you go then it’s a good option but if it is a longer term thing you should perhaps consider that you cannot afford this trip at the minute and consider something that keeps you in your budget. 

Furniture 

You can get 0% deals on a lot of furniture items if you qualify but the thing is that furniture is not generally the kind of thing that needs changed with no warning so it could be argued that it is something that you should save money by for rather than buying on impulse with finance. You can surely live with that older sofa for a little while as you save up the funds for something you can actually afford. One piece of advice to follow is be wary that often these 0% offers are not available to everyone and only a small section of applicants are approved on these terms with everyone else being offered a deal with a much higher rate of interest. 

Generally speaking debt and finance on anything is not a bad thing in itself but you should be wary of where you get it from and if it’s affordable against how essential the purchase really is. If you follow this advice then you can be sure to only use credit when it is really necessary and avoid unwanted financial problems further down the line.

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