Shoppers planning to use a credit card in the sales could get more than they bargained for if they can’t afford the repayments.
As retailers advertise their Black Friday and Cyber Monday deals, bargain hunters will be on the lookout for the best discounts and reductions.
However, while retailers will be promoting how much shoppers could save in their sales, it’s important to think about how much you’re actually spending. This is particularly important if you’re using credit to pay for your purchases.
For example, many major banks charge almost 40% EAR on their overdrafts, which means any shoppers who have dipped into their overdraft could find themselves burdened with an expensive debt if it’s left unchecked.
But, when managed responsibly, credit cards and other forms of credit can be a useful way to take advantage of an attractive deal.
“Consumers waiting to make expensive purchases will no doubt be eyeing up the Black Friday and Cyber Monday sales. However, it’s vital to take a step back to ensure they can comfortably afford any purchases or have a sensible repayment plan in place to cover the costs, particularly if they are buying electronics,” Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, recommended.
Using credit to your advantage
Credit cards are likely to be a popular form of payment for any shoppers hitting the sales, and they can be particularly helpful if you want to spread the cost of a major purchase over a longer period of time.
One of the other perks of using a credit card in the Black Friday sales is the extra protection you receive under Section 75 of the Consumer Credit Act on purchases between £100 and £30,000.
