Paying on plastic could cost you your Black Friday savings

Your Black Friday deals might cost you more than you bargained for if you’re not careful.

Financial experts say one of the biggest mistakes you can make is put your purchases on credit and only make the minimum payments.

“If you’re putting these purchases on your credit card with no plan to pay off your balance, these so-called deals will cost you a fortune,” says Jeff Schwartz, executive director of Consolidated Credit Counseling Services of Canada.

The group crunched the numbers to show just how much a discounted fridge, laptop, TV and snowblower could come to in the long-run. Some items will take you more than a decade to pay off.

“Monthly minimum payments keep you on a debt treadmill. Stretch out your repayment and say ‘good-bye’ to the money you saved on Black Friday.”

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That doesn’t mean you shouldn’t hunt for deals. Shopping for bargains is a good thing, according to Schwartz, who says any attempt to cut cost — especially during the holidays — should be commended.

But it’s best to have a plan going in.

READ MORE: Top 5 picks for Black Friday and Cyber Monday sales

Here are Consolidated Credit’s tips to help protect your bottom line:

• Make a list and check it twice – Come up with a holiday shopping budget – set a maximum amount for spending. Decide who gets what – save the big gifts for immediate family and consider homemade gifts or other smaller gestures for others. A list is your best defense against impulse shopping.
• Browse and compare – Shop around before you buy.  It’s easy to compare prices by using shopping apps like RetailMeNot. You can also let sites that aggregate results like RedFlagDeals do the work for you.
• Don’t store your banking information – Saving your credit card information on shopping websites allows for a quick, easy “one-click” transaction.  But maybe it’s too quick, and too easy. Forcing yourself to punch in your digits gives you precious reflection time to decide whether or not you actually want the item.
• Deal or no deal? – There have been reports of retailers steadily increasing their prices in the fall and then dropping them during the holiday season to create the illusion of a discount. Avoid being tricked by doing your homework and knowing about average pricing.

READ MORE: 6 things to avoid buying on Black Friday and Cyber Monday

“Remember the intent of holiday shopping – you’re buying gifts to show your loved ones that you care,” Schwartz reminds us.

“The gift-giving gesture shouldn’t drive you into debt.”

Last Black Friday, shoppers from Alberta and Saskatchewan charged the most to their credit cards. Those two provinces also happen to have the highest levels of consumer debt, according to Equifax.