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Smart shopper, you? Don't forget the the costs associated with the privilege charging it and worrying about it later. The following article will illustrate the additional costs of buying on time.

Remember the great bargains you got at all those year-end factory close-out and half-price sales? 25%, 50% even up to 90% off? Smart shopper, you. If you had paid cash your savings would have been substantial, assuming you bought things you normally would have bought. Even if you paid by credit card your savings would have been commendable if you paid off your credit cards in full.

It's an entirely different story though, if you carried a balance on your credit cards. The tremendous savings you obtained can be wiped out in short order if you don't pay your bills in full and even quicker if you make only minimum payments on your balances. What many don't consider when buying on time are the additional costs incurred for the privilege of charging it and worrying about it later.

Keep in mind, credit is a privilege, not a right, and therefore comes with a cost. Besides the interest rate you pay there can be annual fees, cash advance fees and a whole host of other charges. If you make minimum payments on your credit card bills as much as 90%+ of your remittance can go to interest alone and the rest to reduce your outstanding balance thus taking years to pay off.

Take, for example, all those bargains you got. If you used your credit card and made only minimum payments, those "steals" you obtained weren't such a great deal after all. Consider the following:

Lets say you went out on a shopping spree and made a killing at all those year end sales. You racked up $2500.00 in "steals" and averaged a 50% savings overall. Not bad. Now look at your overall rate of savings if you made only minimum payments for one year.