Black Friday is a much anticipated shopping day every year and the retailers are counting on consumers dropping their hard earned dollars on doorbusters and Black Friday deals on the day after Thanksgiving. the problem is, if you can't afford it, the deal is not really a deal. Don't let the lure of Black Friday deals put you into debt.
If you're planning on joining the masses for Black Friday 2009, keep in mind that the sales may be great, but you could also run into some financial pitfalls.
Target, Best Buy, Walmart and Sears are just some of the retailers who are offering up $198 laptops, $59 GPS units and $229 big screen TVs. Those are impressive deals for early risers and those who don't mind standing in line for the chance to get a bargain, but at what point do you steer clear of the Black Friday madness?
Here are some tips for smart spending from the Illinois CPA Society:
Open and use credit cards wisely. According to the 2008 Nilson Report, the average American household has $8,329 of credit card debt.Don't use the great sales as an excuse to spend more than you should and be stuck with a high balance in the New Year.
In fact, it's best to pay off all holiday purchases on time, since credit card companies may have upped your interest rates before new credit card laws take effect in February 2010.
You could be paying an almost 30 percent annual interest rate on your bargains.
Be wary of opening store credit cards to get a discount. It will be too tempting to use them and even if you close them quickly, closed accounts can remain on your credit report for up to seven years.
Watch your back. The holidays are prime time for identity thieves. Be aware of your surroundings by not leaving your credit cards on register counters at the mall, or laptops and large purses in the car where they're visible.
Don't give out your credit card number over the phone, whether to a customer service rep or trusted friend,anywhere you can be overheard.
Be careful with gift cards. The new credit laws will also cover gift cards but not until February 2010, so be sure that you read the fine print on any gift cards you plan to purchase or use. They may have expiration dates or fees associated with their monetary value.
Have a game plan. Before you hit the stores, prepare for the big day. Know what you're looking for, where you can find it and how much it is at each store. Set a budget for yourself so you don't overspend.
Be sure that you understand the return policies at the places you make purchases and always ask for a gift receipt. That way the merchandise is at least good for store credit if you can't get your refund in cash or a credit on your card.
Don't use Black Friday as an excuse to let things get out of control. A deal is only a deal if you have the money to pay for it.
There are so many Black Friday deals and Pre-Black Friday deals that many might be tempted to go over your budget, but that would be the worst end of the year decision ever. If you're out there shopping for yourself, as many holiday shoppers do, shop responsibly and ask yourself, "Do I really need this?"
Cheryl Phillips
HULIQ.com
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