You've convinced yourself you are going to "bite the bullet" and make that expensive holiday purchase for the big screen TV, Kindle or new car - on credit.
 
Like many Americans, you can't pay cash for it because your disposable income is already too tight. And you are worried about your job and the economy in general.
 
In the past, you've run up the credit cards, refinanced the home multiple times, and paid off most of some of your credit cards - and felt some temporary relief.
 
This holiday season you rationalize the purchase because the store is offering "0% down payment" or "0% interest for six months" and "that is the only way I can afford it"?
 
Stop! If you are going to tell yourself this story then you better hear the other side - the side you haven't wanted to admit before.
 
The side that shows you the true cost of buying on credit.
 
In the past, you may have bought on credit believing you would pay it off soon, right?
 
But then you discovered that other unforeseen expenses came along, and you couldn't pay off the balance. And - like many Americans - you now have problems even making the minimum payment.
 
Past experience is probably the best indicator for future behavior. And those experiences should drive future decisions.
 
Besides, we don't really pay off credit cards. Let's be honest. We shift the debt to our homes even as we watch them decrease in value.
 
Where's the proof?
 
Just yesterday, the Wall Street Journal said that "one in four borrowers" is underwater on their mortgage.
 
See http://online.wsj.com/article/SB125903489722661849.html
 
Undoubtedly, many of those homeowners have second mortgages filled with previous credit card balances they never paid off.
 
Clearly, it's popular to believe that Wall Street decisions have bankrupted Main Street.
 
But we can't shift all the blame to the economy, the Federal Reserve or high rolling bankers. In reality, we probably bought homes we couldn't afford, and may have thought that was ok because the bank "approved the loan".
 
And that problem began with all-to-eager merchandisers who felt the need to run their business on the interest they could make on our financial ignorance. It all started with the innocent offers to get something free now and pay later.
 
HelpMeFinancial has calculators to help you make sound financial decisions you may have neglected in the past.
 
So let's get back to that big screen TV you want to put on your credit card. If we take the emotion out of the purchase, we can see the real data...
 
On this Web site, go to Debt > Calculators and click on How long will it take to pay off my credit card(s)?
 
First, type in the amount in "Current credit card balance ($)" line. Let's put in $495 for the big-screen TV.
 
Next, fill out the "Annual Percentage rate (%). Note, don't put in 0% but rather the APR after the promotional period. It's likely 18% or more. That's the fine print they didn't advertise.
 
Leave the other default amounts.
 
Now, run the calculator and see that it will take five years to pay off that big-screen TV.
 
That brings the total purchase price of $495 for the big screen TV + $213 for the interest.
 
In reality, the big-screen will cost you $708 and not the $495 advertised price. If that isn't enough to scare you, re-run the numbers with your current credit card balance.
 
The lesson? Don't pull out the credit card. Pay cash instead. And enjoy the peace of mind of knowing you are finally making decisions to get you out of debt and help you find financial security.