What is Black Friday?
Black Friday is an annual holiday of discounts, promotions and discounts. Discounts can sometimes reach as much as 80% or more. There is also an increase in consumer activity on this day. In 2017, this increase amounted to as much as 624% in relation to average consumer habits. This custom originated in the United States, but in the era of globalization quickly spread to other continents. Today, more and more companies are offering the biggest discounts of the year on this day. It falls every year the following Friday after American Thanksgiving and is considered the start of the Christmas shopping season. In 2018 it falls on November 23.
This is an extremely interesting holiday. Many holidays such as Valentine’s Day or Halloween also encourage spending, although they do so in a slightly more subtle way. Black Friday does not hide that it is even a caricaturedly consumer holiday. This is not an opportunity to feast together with loved ones, but to get the best opportunities and prepare for the exchange of gifts on the occasion of Christmas.
Be careful with promotions
Especially in the current state of the world economy, it is increasingly difficult to maintain a stable income of money at home. Achieving high income and maintaining it at a high level has become much more demanding than it was a few decades ago. This means that many families can not afford to fill the space under the Christmas tree with boxes with nice bows. For some, just preparing a hearty Christmas dinner can be a financial challenge. However, we are almost programmed to buy as much as possible during this period. The more difficult it is to come to our senses when all stores offer us promotions that only once a year are so encouraging.
It is important not to be carried away by shopping madness caused by discounts. We are tempted by the low prices of flat-screen TVs and elegant shoes, but you have to remember that although it may be smaller than usual, it is still an expense. We should seriously think about whether we can afford such a purchase.
At present, it is very easy to apply to one of thousands of banking institutions for a personal loan in order to make Christmas purchases. Shopping frenzy on the occasion of Black Friday can do a lot of damage to your home budget, if we spend money that we will have to return in even more than we borrowed. If we do not have cash during this period, the spending of which on pleasure would not harm our budget, then do not decide to shop.
Experts advise you not to be fooled by quick loans especially during the pre-Christmas shopping craze. This is a very easy way to fall into a spiral of debt, from which it can be extremely difficult to get out. Although many people pay their debts on time, experts almost unanimously advise against applying for a loan. The most popular and reasonable rule is simply to see if we have that amount in our current account. Even if we have the right amount of money there, but we know that we expect bills to be paid, we should also refuse purchases.
Debt for the holidays
Holidays are a special time for many people. The end of the year is approaching, the moment of summary and reflection is coming. It is especially important for our psyche and persistence in decisions that we do not deepen the holes in which we can be. Despite the encouraging posters from everywhere, which are screaming about big discounts, one has to consider whether entering into further debts is what we really want. I think we all want to enter the new year with the cleanest and most favorable bank account balance and the least amount of debts and liabilities.
Let’s also remember that the main goal of Christmas is not to throw your loved ones as many presents as possible, despite the fact that often department store ads show us this picture. We will not be able to buy the most valuable items for the holidays, no matter what discount we would not find or what loan we would not take. Probably everyone much more than a glowing watch or a new console will appreciate the opportunity to see their loved ones, share a meal and have a pleasant conversation.
We are currently in debt at an increasingly alarming rate. For many people, drowning in debt has almost become the norm. Let it not be our natural state of affairs.
Good debts and bad debts
“Debt” has become a very negative term, although it may not always be associated with negative things. Of course, if we spend money that we do not have on items that we do not need, then there are few cases where it will be considered good. However, some financiers argue that debt in itself may not necessarily be bad. Some of our financial commitments are almost a necessity and should not be seen as something 100% bad.
Such a “positive” debt can be, for example, business or housing credit. Taking such a loan often means that we have an adult approach to life and are ready to make new commitments, both mentally and financially. Another example of good debt can be a student loan that we finance your education or other type of professional development.
Incurring debts that we can’t pay is always irresponsible and unreasonable. Such consumer behavior has led to economic crises in the past. All the more so if these debts are incurred for whims and whims.
Many banking institutions offer “quick and convenient” loans that can be taken online. At a time when borrowing money has become so easy, we should beware of it all the more. It is becoming increasingly common for companies to create loans specifically dedicated to the Black Friday occasion. Some of them even allow you to take advantage of further promotions in given stores.
Increasing credit card debt is also incredibly easy. That doesn’t mean it’s a good idea. The most important thing is to take a sober look at our financial situation and think about whether we can afford the purchase.
Let’s be responsible
Black Friday is a really good opportunity to save money on shopping. The most important, however, is not to exceed the limits we impose. If we do not have enough cash, and it could be problematic to return a loan taken for the occasion, let’s be modest and save ourselves worries. Remembering that Black Friday takes place every year, we can prepare for the next one. All you need to do is set aside some money in advance (here are some tips) and prepare a list of things you would like to buy to survive Black Friday without compromising your home budget.
Problems that may arise as a result of ill-considered loans can also negatively affect our creditworthiness or even block our credit card. If our debts still have arrears 180 days after the repayment deadline, the bank assumes in advance that they will not be repaid. Our account will be closed and the bank will sell the debt to a debt collection and enforcement company. It is possible that our phones will be flooded with a wave of calls from this company that can be annoying. Although there are restrictions when it comes to harassing the debtor, the debt remains legally valid and must be repaid. By delaying long enough, we may be sued.
It also means a significant reduction in our credit standing. In this situation, we will no longer be able to take out a loan in the event of an emergency. The consequences of ill-considered Christmas shopping may be greater than we expect. So always remember to have your finances carefully and responsibly.