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Why Experiences Make the Best Presents page 1
Porky Myths and High Society
Thank You for Joining Us page 2
Experience-Based Presents Your Family Will Love
Chicken Caprese Salad page 3
Spot the Latest Marketing Ploys to Avoid Overspending page 4
AVOID OVERSPENDING THROUGH SAVVY SHOPPING
Marketers are magicians at luring shoppers to buy more than they intend. Whether you are shopping online or in a store, vendors use a variety of tactics to heighten the allure of their products, helping drive total U.S. household debt to a record $17.3 trillion. To help combat this, here are four financial tips to keep your budget intact and your debt under control. BE WARY OF ‘BUY NOW, PAY LATER’ OFFERS. These short-term, interest-free loans with fixed payments don’t require a credit check and are quick and easy to obtain. Not surprisingly, they tend to be most popular among consumers already in debt and strapped for cash. The Consumer Financial Protection Board says this puts consumers at greater risk of piling up more debt than they can afford. Also, returning items purchased this way may not always result in a refund. DON’T APPLY FOR EVERY CREDIT CARD OFFERED. Agreeing to apply for a store credit card seems like a no-brainer when you are offered 20% off for doing so at checkout. What’s not to like about that? It dings your credit score, for one thing. Applying for a credit card results in a hard pull
on your credit report. Signing up for loyalty programs can also be self-defeating because they can maneuver you into excess spending to get more points and perks. Also, loyalty programs can discourage comparison shopping, which could otherwise save you money over time. DON’T FOCUS ON MONTHLY PAYMENTS ALONE. When making an installment purchase, car salespeople, real estate agents, and other marketers of big-ticket items will often ask you how big a monthly payment you can afford, then stretch the payments out over the maximum period of time to entice you into a larger purchase. But consider the whole cost and how much the interest adds to that total. It may shock you. Also, notice price-anchoring ploys. Retailers often claim a $76 shirt is on sale for $38 — when they never intended to sell it for anything but $38. ABSTAIN FROM RETAIL THERAPY! Shopping for fun is a major factor driving consumer debt to a record high. Make a list before you shop, and avoid browsing or shopping with friends. Turning shopping into recreation can easily lead to impulse purchases and spending more than you intended!
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