Alternative, Creative Ways to Pay for Big Ticket Items

Editors' pick: Originally published May 12, 2016.

O.K., you've got your eye on a new Apple laptop computer, with all the bells and whistles, for about $1,500. Or, how about a new home renovation project? Let's go for a new deck, with built in wet bar and luxury Tommy Bahama fire pit? Total cost: $10,000.

As appealing as both big ticket purchases may be, there's the vexing problem of how you're going to pay for your new household luxuries. The urge, of course, is to reach into your wallet or pocketbook and whip out your Visa or MasterCard to cover the bill - you'll worry about paying it all off later.

Studies on what consumers use to pay for large purchases are hard to come by, but TSYS, a financial payments firm, does a good job with its 2014 Consumer Payments Study.

That study shows consumers are more likely to use debit cards for average purchases (although that gap is closing), but the data point to credit cards as the payment of choice for larger product and service buy-ins. "43% of respondents preferred debit as their overall payment type, and 35% indicated their preferred payment type was credit," the study shows. "These percentages represent a decrease in respondents who preferred debit from our 2013 study, where 49% indicated they preferred debit."

But consumers are significantly more prone to use their credit cards over debit cards for larger purchases, like travel (43% to 18%), department store shopping (40% to 35%) and online shopping (48% to 30%), the study reports.

That's led to some big charges for U.S. credit card consumers. According to Backed, a personal loan services company, the average American household accumulated $15,762 in credit card debt and spent $6,658 in interest. "For many, large purchases cause stress and require planning, whether it's what credit card to put it on, how to save enough money, or building up a credit score to do an installment plan," Backed says in an email to TheStreet.

U.S. consumers seem to be aware of the high costs of credit card interest and are acting accordingly. "What I've done in the past is open up a store credit card in order to receive the huge discount," notes Zondra Wilson, CEO at Blu Skin Care, in Hawthorne, Calif. "I then purchase my big ticket items. I just make sure it's paid off before the interest kicks in. Then I close the credit card."

One of the ways consumers pay for big ticket items is by looking at a company's financial options.

"I needed to get my upstairs bathroom remodeled," says Kathy Coman, a homeowner based in Columbus, Ohio. "One of the companies I happened to call was Sears, who advised me that since I was a homeowner, I was able to get financial assistance that can span out for 24 months or more depending on my credit."

Keeping a sharp eye on purchase interest rates can keep the high cost of big ticket items at bay, as well. "I'm a big time shopper, and I look for 0% interest on large items," offers Steve Turner, with Solomon Turner Public Relations in Chesterfield, Mo. "Many stores will give you this for six months, 12 months or even 18 months. If not, try to negotiate the deal. The bigger the item, the better chance you can get it."

Turner also advises aiming for price match guarantees. "Best Buy does this and so will others," he adds. "You can bring in your receipt 30 days later if you see a lower price anywhere."

Paying cash can get you a lower price, too. "If you pay it all with cash upfront, you can get 10%, 15%, or 25%," Turner says.

The moral of the story? Don't pay premium prices for top-shelf purchases, and don't use a credit card. As the tips above prove, there are plenty of better ways to save on those big ticket items.