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4 THINGS YOU SHOULDN’T BUY ON CREDIT MARTIN HESSE THEY make it so easy, don’t they? They give you a store card and you can just go crazy, shopping to your heart’s content. It’ll backfire on you in the end. But they don’t care. They just keep adding interest and admin charges to your account balance (because you’re only paying the suggested minimum monthly amount, not realising that it’s barely making a dent in what you owe). And when you start skipping payments, they simply
turn you over to their lawyers, who add their exorbitant fees to your debt, which is by now unmanageable. Worst of all, you have nothing to show for it, because your credit was on consumables or goods that plummet in value as soon as they leave the shop. Do you know the difference between good debt and bad debt? Good debt is a loan you have on something that grows in value, such as a property. A student loan is also considered
good debt, because you’re using it to invest in yourself. Bad debt is money you borrow to buy things you consume or that decrease in value. The only type of bad debt that is unavoidable for most people is vehicle finance. Debt on the following four categories of items should be avoided as far as possible. 1. CLOTHES If you want to live within your means, your clothes expenditure should be incorporated into your
