How to Finance the Purchase of New Technology
In an ideal world we would be able to buy everything our little hearts desired. Sadly most of us are not that lucky and any expensive purchases require forethought and planning. Owning the latest technology is pretty cool. It is great to be able to watch movies on a surround sound home entertainment system or log into Facebook from a brand new iPad. The trouble is that these items are often more expensive than most.
In theory, technological gadgets should be fairly cheap these days. In some cases this is true. Generic electrical goods are mass produced in the Far East and sold at discount prices in many budget stores. However, if you want the top brands or the latest electronic gadgets you are going to have to pay top dollar for them. So what is the best way to finance new technology purchases?
The best way to buy expensive technology is to do it the old fashioned way and save up for the things you want. Saving up isn’t all that fashionable these days. We live in an instant gratification society where the ‘I want it now’ generation don’t like to save up for months (or even years) to buy new things. But saving is good. It makes you think more about what you are hoping to buy, and when you finally hand over your hard-earned cash, you will appreciate the purchase a whole lot more.
Credit cards are a useful tool for buying expensive items. A credit card lets you spread the cost of the purchase over several months, which is good if you ‘want it now’ or have spotted the ‘deal of a lifetime’. Do remember, however, that credit cards are not free unless you can take advantage of an interest free introductory deal. If that isn’t possible, make sure you factor in the extra interest charges when deciding if the deal is a good one.
Store cards are usually more expensive than credit cards, but sometimes the stores offer good incentives in order to persuade customers to use them for an expensive purchase. If you have your heart set on a new TV system, don’t be talked into making the purchase on a store card unless you have had time to read the terms and conditions. Walk away, cool off and then decide whether you still want the item.
Personal loans are only suitable for the purchase of expensive electrical goods if you want top of the range equipment costing several thousand dollars and your credit cards are all maxed out. You need a good credit history in order to be eligible for a personal loan, so don’t even bother applying if you this is not the case. Don’t go the first deal you are offered – there are plenty of good offers with low interest rates available if you look online.
It is always better to save up for expensive technology. But if you really can’t wait to own the latest iMac or satellite TV bundles, look out for interest free deals that allow you to spread the cost of the purchase for free.