‘Tis the season to be generous—especially if you’re a retailer. Special holiday promotions are popping up at malls and in cyberspace, leading to some unexpected windfalls for consumers this shopping season.
Financial experts say that savvy shoppers can cash in on holiday giveaway programs, enabling them to reap some impressive financial rewards this Christmas. However, consumers must also be on the watch for hidden fees and other potential liabilities.
One of the biggest trends is discounts for applying for in-store credit cards. Macy’s and J.Crew are particularly well-known for such promotions. Such programs can provide consumers with instant savings when they need it most—during the all-important holiday shopping season. If you’re in the market to make some large purchases, such discounts can be particularly handy. Even online outlets such as Amazon have been known to offer discounts for applying for credit cards.
However, financial experts caution that consumers must be wary of the high interest rates that often accompany store credit cards. In fact, the rates can be as high as 22%! You can avoid the problem by paying off your credit card balance each month or simply applying for a low interest credit card. Alternatively, you could take advantage of the many rewards credit cards available at Credit Cards Info.
Another special holiday promotion is delayed billing. Retailers such as Wal-Mart and Petco offer consumers the opportunity to postpone their bills for 90 days. With such a promotion, you can avoid several months’ worth of finance charges. In the meantime, you can apply the money you save to other pressing bills.
However, the drawback to paying later is that, if you miss a payment deadline, you may end up paying higher interest rates. In fact, the rates can skyrocket to nearly 20%. You also lose your grace period, adding to the financial strain.
The bottom line, then, is that consumers need to be cautious in taking advantage of holiday discounts. Used wisely, they can be a blessing - misused, they can easily become a curse.
Recent Comments