You've been fairly restrained in your spending over the year, and you'll be getting your Christmas bonus in a few months. The plan starts to form in your head as you run your fingertips over the ottoman's luxurious exterior: you'll charge the furniture to your credit card, pay what you can afford each month until bonus time, then pay off the entire amount.

It may be a good plan if: (1) you're sure the bonus will come; (2) you limit your spending to the amount of the bonus (i.e. don't treat it like an endless supply of money); (3) you've found a card with a credit limit high enough to accommodate the purchase and with a reasonable interest rate over the period of time you'll need to pay off the balance.

Using a card offering a low introductory rate can be one choice for financing large purchases over a short time if you are certain you will pay off the balance and are comfortable with the terms. Opening a credit account with the furniture store is another option, but retail-issued cards are notorious for their very high rates of interest.