CAUGHT IN THE NET
Shoppers love to snap up bargains online but they should be wary of traps, writes Sophie Elsworth
THE lure of buying goods online 24 hours a day, seven days a week has left many shoppers making purchases they regret – and it’s hitting their hip pockets hard.
Consumers are bombarded with online discounts but experts say having self control is crucial.
In the lead-up to last Christmas, bumper sales days including Black Friday and Cyber Monday prompted many shoppers to splash their cash and, consequently, many were left nursing serious credit card debts.
Research from debt solutions company Fox Symes quizzed 1000 Australians and found 73 per cent had made online purchases they regretted.
And four in five shoppers used their credit card when they made a purchase online.
Fox Symes director Deborah Southon said the ease of shopping online was a trap for many consumers who could easily be sucked in by marketing gimmicks.
“One of the worst things you can do is store your credit card details in a website you use frequently,” she said.
“It gives further incentive to press the purchase button.” Ms Southon urged shoppers to sleep on any purchases they planned to make and instead proceed in the morning only if they still really wanted the item.
Belinda Winwood-Smith, 45, said she liked to buy online because it was convenient, but she did keep a close watch on how much she shelled out.
“You can get your credit card or bank statements online and you can see all your transactions and think, ‘have I spent that much?’,’’ she said.
“It’s more visible than cash so I think I can control it better, but at Christmas time money can just go flying out the window.”
Shoppers are hungry for discounts.
HSBC Australia’s latest report, The Insider’s Guide: The Passport to Smarter Spending, found 66 per cent of shoppers waited for special offers before they shop.
And about 37 per cent purchased from overseas websites.
However, 58 per cent found shopping on international sites less appealing because of the currency exchange rates and fees involved.
HSBC’s head of retail banking and wealth in Australia, Jessica Power, advised shopping “prudently.” “The key thing is buying what you need to buy,” she said.