Black Friday is considered one of the biggest shopping days for discounts in the retail calendar but it also can be the reason for people falling into the debt trap.
However, Black Friday is not the major discount shopping day of the year; there are better discount opportunities throughout the year, according to Charnel Collins CEO of National Debt Advisors.
Collin said: “Many retail outlets often inflate prices just before Black Friday to create the illusion that prices have decreased dramatically on the day.”
Collins said that many used the marketing practice called “loss leader” where the prices of a select few items are lowered to attract buyers who will also purchase other items that are not on sale.
Here are 5 money tips for Black Friday:
Budget
Creating a Black Friday budget means that consumers need to make a list of the items they want to buy and set a corresponding budget. It is important that consumers stick to their budget plan and avoid being tempted by impulse buys.
Be vigilant
Consumers that are choosing the online shopping option for Black Friday should be cautious of fraudsters that are trying to take advantage of the frenzy of the day and scam people into buying poor quality products.
Collins said: “Apply the notion that ‘if it's too good to be true, it probably is.”
Essential items
Black Friday is not only for luxury or non-essential items. Consumers should be on the lookout for essential items (such as food and toiletries) that they can buy in bulk and save money on.
Avoid debt
According to Collins, if you cannot afford to buy an item with the money you have available then don’t buy it.
Consumers often turn to credit but that can turn into consumers paying much more than the advertised price because of interest and debt servicing costs.
“Consumers should avoid buying on credit all in the name of Black Friday,” Collins said.
“The best way to avoid debt is to keep track of your spending and buy only what you can afford.”
Do your research
Consumers should do their research and browse different stores for the items that they want to ensure that they are getting the best deal.
As a final piece of advice, Collins said: “The important thing is to shop wisely and not get duped into buying things you do not need.”
IOL Business