How to Save Money this Black Friday
It is easy to get carried away on Black Friday as you are faced with tempting offers from major brands. When done correctly, Black Friday deals are a great way to save some money on your must-have items. Here we share our top tips on how to save money this Black Friday.
Do Your Research
Before entering the chaos that is Black Friday, make sure you have an established shopping plan. Wherever you are shopping, be it physically in stores or online, make sure you know what you want. That also allows you to do your research beforehand and make sure that you are shopping around for the most competitive deal.
Use Cash Back
Maximise your savings by using cash back card options. This means that every time you make a purchase on the card, you earn a percentage of your spend back. In the long run, this will mean a reduced credit card bill.
Additionally, depending on the provider, you may benefit from cash back directly to your bank account or you can opt for points or vouchers for further savings.
This service is usually free and can save you money at a long-term level. It also means that your Black Friday purchases are being paid forward.
Also available are various cash back apps which can be used for Black Friday online purchases. The app applies vouchers or coupons at the checkouts and can also notify you when products you have viewed have dropped in price. Some apps allow you to earn gift cards from many popular retailers or give you opportunities to increase your earnings.
Buy Now, Pay Later (BNPL)
Buy Now Pay Later (BNPL) is a growing sector and can help people manage payments and make big purchases far more affordable. This way of payment divides your purchase into equal instalments, the first of which is made upon purchase.
These can be a great option when doing your Black Friday shopping as, rather than being hit with one big fee, you can manage your payments into more digestible amounts over time.
However, BNPL is only a good offer if it is interest-free. Check out the provider beforehand to avoid being hit with a hefty interest fee.
Avoid High Cost Lending
Black Friday is a perfect opportunity for lenders to adjust their interest rates meaning that borrowers are at the mercy of extreme APR, especially for those with poor credit.
Taking out a payday loan to save in the short-term for Black Friday sales shopping, may cost you far more in the long term as what you save in the Black Friday deals, you will be paying in interest fees.
High cost loans like payday loans might sound appealing because of the quick release of funds, but this is an expensive form of finance and can lead to financial difficulty if you struggle to repay. This type of product is also better suited to emergencies, rather than for shopping or casual buying.
Choose The Right Credit Card
There are a range of credit cards that offer rewards and various perks. These could include no annual fee, travel rewards and sign-on bonuses.
Signing up to, and activating, a new credit card before Black Friday could mean that you benefit from certain perks such as cash back, promotions in particular shops and outlets and discounts on certain purchases.
Consider 0% Credit Cards
An alternative means of spending of Black Friday offers is a 0% credit card meaning that you can avoid paying any interest for a certain period of time. Often with these cards you may also be able to earn a sign-up bonus and other rewards.
One thing to keep an eye out for is the high interest rates that are incurred if you are unable to pay off the balance before the end of the introductory period. As long as you pay off the balance in time, this could be a good option for Black Friday savings.