Today is a continuance of my experience from over the weekend but is about what I overheard instead of what happened to me.  It’s kind of in the vein of going to a great sale and thinking  “the more I spend the more I’ll save!”

Companies that offer credit, especially credit card companies, are no dummies when it comes to knowing how people will act when they are offered a special discount or reward for using their credit card (or line of credit or whatever form that credit offering is in).  They know people like to get a great deal and save money, theoretically anyway because the truth is they are not trying to save you money but are instead trying to get as much of your money as possible.

And we as consumers fall for their tricks.  I have many many times.  I have bought way more than I planned at stores because I was clutching a coupon that gave me an  extra 30% off everything I purchased; or I got double reward points for every dollar I spent at the grocery store so I stocked up on groceries (and later threw a lot of the food away because it spoiled before we got it eaten); or I got a great free “gift” of trial size cosmetics that are still sitting in my bathroom drawer for a mere $40 purchase of some overpriced cream or lotion.  And those are just a few examples of the stupid stuff I’ve done.

And I now know it’s not just me whose mind turns to mush when the thought of saving extra money is mentioned.  Here’s my case in point:

Last weekend while shopping I was waiting at the checkout with a sales manager while she was trying to find the workout pants I wanted in my size.  It was slow in the store so while we were waiting she started telling the clerks at the register about this lady who had “backwards” thinking.

The sales manager had someone come into the store with a scratch off discount coupon that she wanted scratched off  so she could see what her discount was (it was void if store personnel didn’t scratch it off – just another way to get people to come into the store).  She said she was hoping it was only for 15% (some were 15%; some were 20%; and some were 30%) because she didn’t really need anything; but if it was 30% then she was going to have to shop and use it because she couldn’t pass up such a good deal (exactly what the store wants people to do!).

Of course her coupon was 30% off so she was sad because she was going to have to come back and shop.  The sales manager said that was “backwards” thinking because the lady who got the 30% off coupon should have been happy.

Sure, she should have been happy – BUT ONLY IF SHE NEEDED SOMETHING, COULD AFFORD IT, AND COULD PAY IT OFF BEFORE INTEREST CHARGES ACCUMULATED!  And, only if she is responsible with credit (which I doubt since she just “had” to use a 30% off coupon but wouldn’t have bought anything if she was only going to get an additional 15% off).

How stupid is it to spend money on stuff you don’t need just to save some money?

For a long time I would have said it’s not stupid at all because I would have been just like that lady if I had gotten a 30% off coupon but didn’t really need anything because I would have felt obligated to find something to buy because there was no way I was going to let a great deal like that slip through my fingers.  Yep, smart thinking like that got me tens of thousands of dollars worth of credit card debt.

Avoid the traps that try to part you with money you don’t need to spend or want to spend.  A good deal isn’t a good deal if you don’t need or can’t afford it.

Write that down and carry it in your wallet if you need to so that you have to look at it every time you open it up to pull out a credit card:  “A good deal isn’t a good deal if you don’t need it or can’t afford it.”