Almost everyone falls into one of the two groups of spenders, that is a big spender or a wise spender. This will be determined by your spending habits, and your take on the decision you make before purchasing an item. Take for example the following article by Greer Lean that tries to differentiate between the spenders. and how they are both affected by debt.
Today’s world is a bit different from your parents’ world. For starters, the lifestyle is much more lavish, than it was in the ‘50s and ‘60s. Back then, TV was first making its mark on the world, and things like energy-efficient appliances were decades away from seeing the store shelves. While a TV may have cost you a few hundred bucks back then, purchasing that flat screen 42-inch HD TV will set you back a few thousand dollars today. A fridge may have put you back a hundred bucks then, but today most have to work up a payment plan. There is something you should ask yourself though; are you actually paying for these big-ticket items up front, or are you using credit?
If you use a credit card to pay the full sum of these types of items, you’re basically considered to be a big spender. Maybe you’re not reckless or irresponsible, but you are at massive risk if you choose to splurge when using credit. You’re probably sitting there asking, “What’s credit for if I can’t use it to purchase items out of my price range?” Well, in a sense, that is what credit gives you: A means to purchase items out of your price range. But it’s not the price tag of the item that’s the problem; it’s the item itself. A big-screen TV isn’t really a necessity now, is it? When the interest rates spike, and you’re left unable to pay your cable bill, what difference is that TV making?
The point is to always be responsible. You can be a big spender, but only if you have a plan in place. Although you might be able to rummage up emergency cash loans, is that a path you want to be constantly going down? One of the first things you need to look at is the fine print of your credit plan. For example, if you ring up $3,000 in smaller charges, the interest isn’t going to be that bad. But if it’s for a single item like the TV, the interest may just kill you. It’s this type of practice that tends to catch some people off guard. Because you’ve been maxed out before and got out okay, you’re thinking that you can do the same thing again. But when the higher rates catch you by surprise, you could be left unable to pay.
Unfortunately, even wise spenders get caught up in debt. A wise spender is someone who always weighs the risk before going after the reward. For example, instead of purchasing that television set, a wise spender is going to shop around for deals, try a lay-by plan, and look into maybe saving the cash for it, week by week. If could just manage to hold back on that purchase a little longer, and treat your savings like you are paying off a personal cash loan, you would be able to use your own money to make the full purchase, interest-free!
Just remember, debt doesn’t care how well you manage your finances. If you’re unable to work for a week and miss a check, even the wisest of the wise can fall victim to the almighty debt. Because once you’ve got bad credit, you will find yourself between a rock and a hard place. Big spender, wise spender, or any other kind of spender can wind up owing money. However, if you ever really find yourself in a bind, seek help from professionals. Short term lenders that specialise in lending to responsible customers who need help paying off a small debt can be a great help. Short term cash loans of $100-$600 are now able to be accessed online through minimal or no paperwork; just make sure you’re dealing with a reputable lender. As anything, just be sure to do your homework and shop around. If you do really need the quick cash infusion, be sure you keep it a novelty experience.