I was watching the show, Mike and Molly tonight on CBS.  They were exchanging gifts for their first Christmas together.  Mike gave her a diamond bracelet.  When Molly opened it, she told him he could not afford that.  He told her he could, it was only 110 easy monthly payments.  When she pointed out that was almost 10 years, he realized maybe he couldn’t afford it.  She insisted taking it back.  She didn’t want to spend the rest of their lives together paying off her first Christmas present.

Although sometimes it is alright to buy items on payments, you have to consider how long it will take to pay it off and how much extra you will pay in interest and finance charges.  Also, if you end up with multiple items on monthly payments, the amount you owe each month could end up being more than you can afford with your income.

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