Join me everyday in February as I share ways to save money on just about anything you need, want, use!
It seems like the washing machine or refrigerator has a knack for going out when money is already too tight to be spread around any more. Or the back deck needs to be rebuilt, or the yard needs to be fenced in, or the lawnmower broke…always something right?
Here is the only tip I have for those situations. It is how we bought our refrigerator, fenced in our backyard after we moved in, finished the basement room before Bug was born and bought our riding lawnmower.
We have a Lowe’s credit card. We will periodically get offers for no interest on purchases over a certain amount (usually around $300) for a set period of time (usually no interest for a year). They used to do no interest and no payments but I think there are some laws preventing them from offering that now – so there is a minimum monthly payment. But it still works the same either way because before they required you to make a minimum monthly payment, we still made monthly payments because that’s how you save!
Say for example, you need to spend $450 on a refrigerator. With a no interest for a year offer, you would charge the cost on your Lowe’s Card (Home Depot, HHGregg, etc. They all make similar offers). Take your full amount and divide by the number of months you have your no interest offer. This could be MORE than your minimum monthly payment – so be SURE to do the math!!! Don’t just think that if you pay the minimum that you’ll be alright! DO THE MATH!
So, if it was $450 for 1 year – divide $450 by 12 = $37.50. That is the amount you need to pay each month to pay it off before the terms expire! Why do you need to pay it off during the ‘no interest” term? Because if you don’t they will charge back interest from the first day of the purchase. Meaning you will not have saved ANYTHING by taking advantage of the no interest offer. You also need to make sure NOT to make a late payment. This automatically voids the no interest offer and you’ll be charged back interest and begin accruing interest on your current balance!
But you can see how a large expense can be easily manageable buy playing your cards right. At the end of 12 months, you’ve paid the same for that refrigerator on credit as you would have if you had walked in and paid cash for it.
When I do this, I’ll divide my payments by 11 and aim for paying it off a month ahead.
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