Everyone is looking for ways to save some money these days. The economy is in the tank and the more you have to spend for essentials (like electricity and water), the less you have to spend on the things that really matter to you. When you add these needs to the desire to have nice appliances and do good for the earth, a lot of people feel like they’re forcing their budgets to burst at the seams.It’s no wonder that eco-friendly, energy-efficient appliances are a big draw for many people. Running appliances typically amounts to 13% of energy bills. The problem is that these purchases can be quite costly. Sure, you know they are beautiful to look at. And, yes, the fact that many retailers will recycle your old appliances can help you to feel better knowing that they aren’t falling into the abyss of landfills. Okay, so you know that these beauties are more energy efficient than what you have now, so it will add to your overall savings year after year – but, then again, these items are expensive!
Buying appliances on credit – when it’s good
What do you do if you really want a 20% more energy-efficient refrigerator, for example, but you just don’t have the cash to buy them? Like a lot of people, you might be considering buying them on credit, which can be great for you – or very bad for you, depending on how you choose to use your credit and your overall budget.
Buying your new eco-friendly appliances on credit is likely a good idea if you are buying a whole set, for instance. Often, you’ll notice dramatic savings when you buy all of the appliances you need at one time. If you’re moving into a new home and need a stove, dishwasher and refrigerator, it’s pretty likely that you can rack up the savings. Though, you can also rack up the debt if you aren’t careful.
Buying on credit is great if you know that you can pay off your new purchase in a relatively short amount of time (think six months to a year, here) and you can get a super low interest rate (like 0%). It’s also a good idea if you have the extra money each month to pay, but just don’t have the cash right now. You might find that you have a favorite credit card that you use. Maybe you have a low rate and have rewards packed into one card and this might be the time to use it, but only if you’re not going to be maxxing it out (that will affect your overall credit score). Instead, aim to only fill up about 30% or less of your total available credit.
When buying an appliance on credit is a bad idea
You should always make sure to check out the terms and conditions and always be aware of sneaky low interest rate deals. A 0% interest rate might sound great, until you aren’t able to pay it off in the allotted time. Then with most retailers, you’ll find that you owe the full amount of interest from the time that you started making your payments! That’s a big chunk of change and one that you want to avoid having to pay if you can.
Also, no matter how beautiful those eco-friendly, high-efficiency appliances are, if you will be stretching your budget too thin by purchasing the high end models, maybe you should consider purchasing something that is more within your budget. It’s not exactly what you wanted, but you might find that there are other models without as many features that are still energy efficient and good to the earth – and your wallet.
Ultimately, choosing to go more efficient and eco friendly is a great choice, if you’re not making payments on them that you cannot afford. Buying on credit can be a great option for some, but think carefully before you sign and commit so you’re able to have appliances that you can feel great about and that are great for the planet – and your checkbook too.
