Retailers have learned how to appeal to our desire for instant purchase power. They can easily sell us on how great it would be to own their newest electronic device, kitchen appliance or piece of furniture. They also know that they need to convince us that we can afford this new luxury item, and low monthly payments through a finance plan is one of their favorite ways to do that.
“This can be yours – TODAY, for ONLY $25.00 a month!”
‘I can afford that,’ we think to ourselves, and we sign up for the monthly payments and take home our brand new purchase. A few months later, we do it with something else. Pretty soon, we have several ‘low monthly payments’ that we need to keep up with and balances that are very slow to decrease.
The trouble with these monthly payment plans is that they take so long to pay off. Because you are paying high interest rates on the principal, you may end up paying two or three times the total value of the item you purchased, just so you could have it NOW. What seemed like a small amount of money, when broken down in installment payments, is making the finance companies lots of revenue, and it’s coming out of your pockets.
Although, it may not be as easy to get out of this situation as it was to get into it, it can be done. At Creditaid, we know the ins and outs of this type of financing. We’ve helped plenty of people dealing with too many monthly payments. We’d be happy talk with you about your own personal situation. Ask for a FREE consultation today.