Being able to browse an online retailer for nearly anything you need was nothing more than an idea just a few years ago. Today, online shopping is a very real part of our lives and opens up a whole world of commerce.
Online shopping is growing in Canada and the trend is only expected to keep going upwards. Retailers and buyers alike love the flexibility, ease, reduced costs, and other advantages of shopping on the web. In fact, in 2016, Canadians spent $19.2 billion dollars on internet purchases.
But online shopping might seem foreign or strange to those who aren’t comfortable online, and there are some ways that this method of buying affects our spending habits. Ask yourself: do you believe these money myths about online spending? Here are some common misconceptions and the reality behind financial dealings on the internet.
Myth: “Online Sale Discounts Are the Best Out There”
Have you ever done any Cyber Monday shopping? You can get some good deals on great products using just your credit card and an internet connection. Some sources report that the online offers available during huge discount sales are better than any you’ll find in person, but this isn’t really the case.
One retailer states that online sale spending is 416% higher on big sale days than non-sale days. Everyone wants to get a good deal, so sometimes we jump at an online sale too quickly. With fewer steps required to make a purchase than physically going to a store and picking something up, it can be easy to make impulse buys.
Myth: “Credit Cards Lead to Debt Traps”
Cashless transactions dominate our daily spending. It’s easy and convenient to tap our way through purchases, and responsible credit card use can be a key component in building a good credit score. One money myth is that having multiple credit cards is a sure-fire recipe for overspending. The truth is that multiple credit cards won’t be the deciding factor in overspending. If someone has bad money habits, the number of cards won’t create the problem, but it could exacerbate it.
It makes sense to be wary of anything that might lead you to financial difficulties. No one plans on hitting a rough patch in the road, but sometimes our paycheques don’t line up with our payments and we need a little extra help. Payday loans can be a real lifesaver in these situations, with sliding scales that accommodate your needs and your income.
Myth: “Online Loans Aren’t Secure”
You can be completely safe online when borrowing money. You need to look for reliable and reputable lenders that are transparent about their services, fees, and offer customer service representatives to answer any questions you may have.
The rules of online spending safety apply: ensure you have a secure password and don’t share the password with others. Any reliable online short-term loan provider won’t ask for fees right out of the gate and they won’t request any sort of fund transfer. Look for businesses with good reviews and testimonials, that exercise discretion, and give you options with how much you borrow.
