They’re talking about installment plans through your credit card. You pay a fee to split a charge into monthly installments, usually of your choosing. By paying the monthly installment and the rest of your balance from other charges, you can avoid interest kicking in, even while you owe the full amount. The fee is usually a % of the purchase, like 3% or 1% per month or something.
It can make sense on a large one-time purchase, but it’s weird to do it for frequent purchases like groceries.
I agree it is, but if you spend that amount regularly, it’d be better to try to reduce your budget, painful as it may be, than to snowball toward ever-increasing payment obligations that match or surpass your monthly total for grocery trips anyway.
These articles make it seem like it’s a routine. If it’s for one-time temporary relief, then that’s another thing.
It wasn’t, and never will be, for me. However, I didn’t go crazy getting things I don’t need. I went out of my way to get the cheaper option on the vast majority of items. Still $600. That’s at least once a month. I can see why those less fortunate would have a hard time.
For a time when dealing concurrently with diapers, formula, cat litter, cat food and the cleaning/laundry supplies that come with that was hitting $400-$550 Canadian at Walmart/Food Basics every two weeks or so for awhile, and that was two-three years ago before everything went turbo. Certainly was not buying nice steaks, fancy deli cheeses or the like at that time (nor have been since)
How many people for how long does that feed? Unless you want to starve on ramen noodles every day or eat only rice, I too don’t see how you’re getting away with less than $100/week per person.
Most groceries only have a shelf life of about a week.
So if you’re only going once a month, either you’re throwing a lot away, or just getting processed, shelf stable stuff that’s in general low on nutrients and overpriced.
I can choose with my credit card to designate a purchase over 100 bucks as a pay over time purchase. I don’t use it for anything less than 4 digits, but this year we got hammered by 4 4-digit car repairs, a 4-digit tree removal, two surgeries for our dog, and a few other unexpected big expenses. I used it for the car repairs and the dog surgeries because there was a promotion where there was no fee, it just raises the minimum monthly payment, and brought the interest down. I didn’t have the cash to pay that many things off at once so I’m using to to pay them down that way at a lower rate.
But you are absolutely right, using pay later plans for small frequent purchases is not great. They might not have a choice though.
They’re talking about installment plans through your credit card. You pay a fee to split a charge into monthly installments, usually of your choosing. By paying the monthly installment and the rest of your balance from other charges, you can avoid interest kicking in, even while you owe the full amount. The fee is usually a % of the purchase, like 3% or 1% per month or something.
It can make sense on a large one-time purchase, but it’s weird to do it for frequent purchases like groceries.
My last trip to the grocery store was $600.
I’d consider that a large purchase.
I agree it is, but if you spend that amount regularly, it’d be better to try to reduce your budget, painful as it may be, than to snowball toward ever-increasing payment obligations that match or surpass your monthly total for grocery trips anyway.
These articles make it seem like it’s a routine. If it’s for one-time temporary relief, then that’s another thing.
It wasn’t, and never will be, for me. However, I didn’t go crazy getting things I don’t need. I went out of my way to get the cheaper option on the vast majority of items. Still $600. That’s at least once a month. I can see why those less fortunate would have a hard time.
For a time when dealing concurrently with diapers, formula, cat litter, cat food and the cleaning/laundry supplies that come with that was hitting $400-$550 Canadian at Walmart/Food Basics every two weeks or so for awhile, and that was two-three years ago before everything went turbo. Certainly was not buying nice steaks, fancy deli cheeses or the like at that time (nor have been since)
How many people for how long does that feed? Unless you want to starve on ramen noodles every day or eat only rice, I too don’t see how you’re getting away with less than $100/week per person.
That’s a month for two people.
What kind of psychopath only goes to the grocery store once a month?
🙋
How does your produce last that long
Most groceries only have a shelf life of about a week.
So if you’re only going once a month, either you’re throwing a lot away, or just getting processed, shelf stable stuff that’s in general low on nutrients and overpriced.
Most groceries last longer than what people think. Might want to take a look at my other comment about this.
I can choose with my credit card to designate a purchase over 100 bucks as a pay over time purchase. I don’t use it for anything less than 4 digits, but this year we got hammered by 4 4-digit car repairs, a 4-digit tree removal, two surgeries for our dog, and a few other unexpected big expenses. I used it for the car repairs and the dog surgeries because there was a promotion where there was no fee, it just raises the minimum monthly payment, and brought the interest down. I didn’t have the cash to pay that many things off at once so I’m using to to pay them down that way at a lower rate.
But you are absolutely right, using pay later plans for small frequent purchases is not great. They might not have a choice though.
They could also be talking about Affirm/Klarna/Afterpay. I’ve seen those advertised as being able to use them that way.
Edit: looking back, that might be the most awkward sentence I’ve ever written. I shouldn’t get on here while I’m drinking.