Living Frugal
The Department Store Credit Card Trap

Sign up for a department store credit card and save 20% on your purchase today. I'm sure you've seen the signs in the department store more than 100 times. It's everywhere and frankly, it's bad debt. It opens the door to the temptation of charging items when it's not really necessary, but convenient. At the end of the month, you'll be in shock at the interest rates on a department store credit card. Scary is an understatement.

The sales clerks are trained very well to push the offers and it's very enticing to say the least. "It's easy, it doesn't take but just a few minutes to sign up, are you sure you want to pass up 20% off your purchase today?" The thought of "saving" gives you the illusion that maybe this is something you should do since you are living frugal? Don't be enticed by the "10 to 20% off", it's not the deal you think it is. You are living frugal to eliminate debt, not to create it.

In all honesty, anytime you apply for a card just to get 10 to 20 percent off your current purchase, you're setting yourself up for exorbitant bad debt. The interest rates on these cards are 19.99 percent at a bare minimum. This means any balance you carry will cost you way, way more than your initial purchase price and now that you have the card, it makes it just a little bit easier to say "oh, I'll pay for it later".

The fact is, you don't need another card. If you can't pay cash or use your debit card, then pay with a bank credit card if you must make a purchase.

Also, keep in mind that a surplus of department store credit cards will diminish your credit worthiness whether you have a balance or not. You don't want the fact that you too many credit cards to cause you to be turned down on a home or any other type of loan.

Don't cower and fall vicitm to the tempatation. You don't need the card. You're living frugal and hacking away at your debts with your debt elimination plan.

Always turn down the department store credit card and pay cash. You can never go wrong by paying cash. You'll be thankful you did later. 


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