The Danger of Impulse Buying and Overspending
Have you ever made a spontaneous purchase only to regret it later? That’s only one side effect of impulse buying and overspending. Before making a decision, people think about satisfying their wants through immediate gratification. The problem is, satisfying your wants can lead to long term consequences, especially when buying things you don’t need.
A possible consequence of impulse buying is a negative credit score. This can prevent you from buying a new house or car, two important investments that require good credit scores. You may be influenced by your impulsiveness or from pushy salespeople to buy something. Before shelling out hard-earned cash, take your time and think about your bad credit score first.
Making the Right Financial Decisions
Aside from bad credit scores, impulse buying has a negative effect on how people see you. If you keep buying on impulse, you may be viewed as someone with no self-control and no financial responsibility.
When the feelings of impulse buying strike again, keep your wallet happy by reflecting on what you need. For expensive items, talk to your family members or significant other about it and wait a while before buying. If you’re told otherwise and think you don’t need the item, you can spend your money on something better (or save it).
Overspending and impulse buying happen frequently in stores. If you love shopping for clothes, best you avoid the department store for the moment. Avoidance is better than satisfying the impulse, so fight your temptations and move away from your weaknesses.
Lastly, getting a credit card is much easier nowadays, and sadly, many millennials aren’t financially educated. If you do find yourself in financial trouble, you might want to try a debt consolidation loan from a Singapore company to secure one payment for all services. This results in lower interest rates and more savings for you.
Facing Sales Pressure
People have their way of convincing you into buying something you don’t want or can’t afford. This is not good for your credit score!
The following are common sales tactics to look out for when you’re out and about.
Limited Time Offers
The temptation of saving money by making a spot-on decision is not effective. You may think you’ve saved on money because of a discount, but in the end, you’ve still spent money unnecessarily.
You may be offered a gift, only to hear a sales pitch hidden. The guilt of enjoying a free item or experience may tempt you to buy something out of guilt. You don’t owe anyone anything and aren’t required to make a purchase.
A salesperson may present to you data and statistics showing why you should buy their products. While they may be true, don’t buy into it just yet. Do your research and make a more informed decision.
Take Your Time
There are many reasons why people overspend and listen to pushy salespeople. However, a bad credit score can hinder you from buying that dream house or auto loan. Heeding sales advice is not necessarily a bad thing, but be sure to review contracts, ask questions, and make an informed decision before you buy. Remember, a well reflected and informed decision can save you money and boost your credit score.