I was recently sitting in a waiting room, flicking through a magazine. They had an advert for a women’s clothing catalog and the prices were shown as monthly installments. In another advert, one could have bought a set of three dresses for a cash amount of R1200 – yet there was an option to pay R106 per month over 16 months. By selecting that payment option you end up paying a massive R497 more than the actual price of the dresses. You could have a whole extra dress for that.
Simply by saving the monthly installment you would be prepared to paid, you could save up for the dress in a couple of months. Nice dresses are not something you should be putting on credit – no matter how much it talks to you…