If you’re a disastrous fashion lover, then you’re not alone in this- around four million British women state that around 50% of their debt is because of fashion shopping. Recession purchases have made women especially vulnerable as they justify that most of them shop to distract their mind and forget their fiscal woes. Team it with a desire to own one of the latest luxury stuff – even if you have to rent it- and you’re under the inevitable fashion debt.
Before you thrash out your store card or credit card, you should ask these following questions to yourself:
- Should I own these trendy fashion items? Yes, according to the shops, they will be sold out in some days. But, are you really in need of it? Shoes and dresses depreciate in value- and real fashion is eternal!
- Do you really have to buy a product with a brand name? Is the branded product actually better than the other products or you’re just paying for the extra hype and advertising of the brand?
- Are you harassing your credit card? Whilst you may receive a 55 days interest free card, is it really a good idea to abide by the slogan… Buy now and pay later with an interest as high as 24%!
- What benefit will the product render you in the long run? Even if you plan to sell in the off-season, it will be priced less than half of the price at which you have bought it. Truly, it isn’t an investment!
- The very first thing that you can do is lower your credit limit. Remember, you have the authority to negotiate the amount of credit on your card. So, you should act responsibly and stick to the lowest balance. Once your credit limit is reduces, it needs to confirmed in writing both by the credit card company and the credit card user.
- Go for cash or make use of debit card rather than making use of a credit card. For simple reasons, it is advisable to spend money that is with you rather than spending money which you don’t have.
- Monthly repayments should be less, but you should calculate the aggregate cost of the items. Keep a calculator by your side and calculate all the interests. This way, you can find out what all things you can afford and what are definitely out of your reach.
- Try to pay for the things which have high interest rates first. This way you will get rid of the hefty interests brands first and then you can focus on the small ones.
- Go for credit card debt consolidation to consolidate all your credit cards together and pay at a much lower rate of interest.Clickhere if you’re looking for a reliable debt consolidation company.
- Speak to a finance counselor about your spending habit and try to draft a budget for yourself. Make sure you stick to it for some time or at least till you’re out of your credit card debt.