Friday, October 24, 2008


From with notes by me:

"It's bad news for retailers, but good for financial health. Cash is making a comeback as the preferred method of payment. Online retailers are particularly troubled by consumers shying away from their credit cards, and according to the founder of Consolidated Credit Counseling Services Howard Dvorkin, "With credit cards, consumers spend 30 percent more (on purchases) than with cash."

Edited to add: Not to mention pay an extra 6%-20% in credit card interest on their purchases they've already spent 30% more on than they normally would have. That's 50% more! Unfortunately, they seem to think we'll return to our old ways (see below). Well we didn't spend cash after Sept. 11, but we do now for a very different reason - the credit in and of itself. People who don't learn from this experience will at least will know they are destined for failure when using credit, at least with that amount of money, not in life..

"Americans have usually gone back to ol' reliable cash when the economy is troubled, like after the Sept. 11 attacks. Dvorkin thinks consumers will return to their credit-spending ways when the economy gets on its feet, saying, "It's hard to to teach an old dog new tricks. Consumers have short memories. When the economy turns around, they'll return to the same old ways."

Nowadays every time I use a coupon or buy something I NORMALLY would buy on sale I tell Brando I earned blank percent on my money. So if I use a coupon I got in the mail for a free meal at Pei Wei at a time I would've eaten out any way then I've earned 100% on my money. If I use a $10 off coupon at Bed and Bath on a $20 item I've earned 50%. If it's a $1 they overcharged me on a $3 item that I bring up at the register that's 25%. These add up to real money. With just those three things I've already earned $19 of my money I've already worked so hard to earn, without any banks CD. I'm not even counting the credit card interest I'm earning had I put it on a credit card and been paying that amount. But that's a stupid tax for me any way, and I'm still paying it on the credit card amount we have left!!

I've also discovered something with Brando going out on dates with him lately. If you're nice enough to people to have an interesting conversation with people behind the counter who have been doing the same thing over and over all day you get lots of free things. I've never seen Brando so friendly with people, but he has conversations wherever we go. Totally not expecting free things, but it practically gets shoved in his hands as he hands it off to me : ) .


Anonymous said...

upon reading this... I immediately opened up my online banking and paid off my credit card :)

and I agree with the coupon thing. I've begun using them as well (as previously embarassed by them- why idk) and I realize 'traps' marketing comes up with. Ooo I have a coupon! I should get that! But in reality- is it something I was going to buy anyways? Probably not. I'm the biggest sucker for Victorias Secret specials. "Save $15 on $100 order". Ughhh.. all I'm saving is shipping. So I've stopped ordering from there lately. :)

great post!

pinksundrops said...

Yay! I loved reading that comment. Yeah, some of those deals really suck. It's the ones that don't that I love taking advantage of. Express used to send out $15 off any amount. I think they've since stopped because of the economy, but I used to love getting free Express jewelry! Now I just keep my eyes peeled and avoid the high dollar gimmicks.


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