Using Discounts and Coupons – Smarter Finance Journal

Using Discounts and Coupons

discount-couponsWe all assume that when we receive coupons or discounts, we are going to save money. But, are we really?

There are coupons for the grocery store that are issued directly from the manufacturer of that product. When we go to buy groceries, the store subtracts the coupon amount right from the balance. People save a lot of money when they use these on a regular basis and shop for these products exclusively. These are great deals.

Then we receive discounts, where if a dedicated store credit card is used, you will receive a certain amount off your purchase. Be aware! This works well when you buy the product and make payment on your bill while you are still there or immediately when you receive your bill. But these companies are counting on you carrying a balance and making more on the interest that they charge, than the discount that was given. Their theory really works, which is the reason there is such enormous credit card debt.

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There are credit cards that offer 20 percent off your purchase, but if you use their card and they will charge 25 percent or more in interest, on any balance.

To avoid getting bitten, the answer is simple… get the discount and pay the bill in full, within 30 days. Always know the due date on the account, as interest is charged daily. When the purchase is completed in this way, you have a win-win situation. If you carry a balance, you will be paying much more than intended.

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