The Big Sale: When a Deal is Not a Deal

"Interest free, no payments for three years. Come buy now!" Have you thought, "Wow, I can buy what I want and have three years before I have to start paying for it. By then, I'll be straightened out and I can pay it off in no time. How great a deal is that?" Sounds good, doesn't it? Until the three years is up, and the payment hits you. The excitement and newness of the stuff purchased is gone and you feel like you're paying for used stuff. And it may not last until its paid for.

The truth is you're falling hook, line and sinker if you believe you are getting a good deal in an arrangement like this. For example, let's say you go in to purchase a bedroom suite and the tag reads, "$2219.00, interest free, no payment for three years." That's their price, no wheeling or dealing. After three years, you start paying off the price plus sales tax. What they don't tell you is that if you walk in there with cash, you can get the furniture for $1500 or $1600. So they are really making their interest with the higher price tag. And how can they wait for you to start paying? Well, lots of other people are reaching their pay date. It is a continuous cycle.

Another deal that is too good to be true is the 3 cents off a gallon of gas if you use your credit card. It sounds good, and it can be a decent discount, if, and this is a big if, you pay your account in full every month. Come on, be honest, how many of us can actually pay our credit cards in full every month? The big companies are counting on the fact that most of us are lucky to pay the minimum amount due, let alone pay it in full. The interest on the cards more than makes up for the 3 cents off you got when you purchased the gas. You really end up paying for that tank of gas for months. Remember that the next time you pull up to get a tank of gas. Okay, maybe half a tank of gas.

Another big deal that is not a deal is the department stores that have the 30-70% sales. Every week. Try this. Go in and price an article of clothing. Let's say the store has it advertised as regularly $19.99 but on sale for $13.99. Two days later, they advertise a big sale. You go in and everywhere are signs 30 to 60% off all merchandise. You hunt that article you had looked at earlier. It's marked 30% off. But the catcher is it is 30% off the original price. So the sales price for the article is $14.00. The same price it was earlier. Plus, if you pay with a credit card, they will probably end up getting the original full price.

So the next time you go to check out those real deals, remember, those companies spend a lot of time and money to come up with gimmicks to get us to spend our hard earned money. So try a gimmick of your own. Buy it when it's on sale, but pay with cash. That's truly the best deal you can get.