Is That Coupon Really Saving Me Money ?

This next part may be common sense to most of you...but for me I just didn't even think about it.  I am a pretty smart gal, but when it comes to a sale sometimes what is in front of me is the only thing I can think about.

Here's an example of where a coupon really isn't a great deal.  I love shopping at a certain department store (which should remain nameless) that sends me amazing coupons in the mail.  A few times a year it will be an actual gift of $10 to spend in their stores with no minimum amount to spend.  It really is $10 free and clear...or is it?  I have never actually only walked into this store and spent $10.  Other mailings that are more frequent is a coupon for 15%, 20% or 30% off.  My inner gambler loves this because peeling off that sticker to see what percentage I received is like a scratch off lottery ticket.  More times than most its 30% off...HELLO JACKPOT!

So I go to my favorite store and I shop, usually its for things I can live without.  Once in awhile I really will go there for a purpose of getting the boys shoes, socks, jacket, etc.  Usually though shopping is just something fun to fill my time with.

So I go to the store armed with my 30% off and a high from all the great savings I'm going to get.  I fill up my cart with $100's of dollars worth of merchandise.  Holy Crap my total is $500...but wait I get 30% off if I use my store credit card...Phew it goes down to $350!  Wow I just got $150 off my total.  What a deal.

A few days go by and I'm bored, I go shopping again.  I might buy a gift or two but again I'm just getting a purse, shoes, clothes (as if I need more.)  So I spend another $350 with my 30% off.  SCORE ME! 

Hmm I just charged $700 in less than a week, I only work part time so there is no way I will be able to pay this off in 30 days when my bill arrives.  I also made a few more shopping trips because it was the holidays.  Crap I've maxed out my card.  Oh no I'm in full panic mode and I can't even remember what I bought (you know those things that made me happy for about 12 hours.)

So the moral of the story is that by the time you pay off your store credit card with the interest of 24% since you can't pay it off all at one time, are you really getting that great deal you thought...

The answer is NO!  This lesson goes for the same on all of your credit cards, if you charge and charge those great deals but cannot pay it off within the given time period, YOU ARE NOT GETTING A GREAT DEAL.  In some cases you may end up spending more money on the item in the long run because who knows how many months it would take you to pay it off.

This seems like total common sense, but like I said, I never thought about the interest I was paying.  The bill or terms of my credit card were never in front of me visibly telling me you are going to pay for this times two!  I just saw a sale sign and had my coupon.  

Don't get sucked into deals unless its for items you really need and it is something you can pay cash with.  If you want that 30% off, go ahead and use your store card but once you leave the register walk right up to the customer service department and pay your bill that day.  If you can't do that you shouldn't be shopping there in the first place.