Group buying websites are sprouting up everywhere. What are your tips for avoiding the traps?

I love modern society. It’s awesome. Everything is immediate. Waiting? B-a-a-h!

We can work from home in our Reg Grundies, choose from 10,000 TV channels and video call our overseas friends on our computers, for FREE! Remember paying Telstra $487 a second to call London? Outrageous!

I am NOT a good shopper. When I shop till I drop, that’s me on the car park tarmac on the way in. The thought of this year’s Christmas shopping? Shiver. So, shopping online … how cool is that?

But this world of in-your-face consumerism is rampantly dangerous to your financial health. I kid you not. Beware of fraud when it comes to online shopping and banking. And ignore all emails promising shares of the estates of dead foreigners.

There are two main dangers with group buying sites. One, that your home becomes a shrine to tacky crap you never use. Two, buying “experiences” that you’ll never do. Don’t let you and your dough be separated for things you don’t need and clearly didn’t really want.

Buy the stuff cheaply that you were already considering.

However, from a small business perspective, these sites have the potential to deliver instant cashflow, generate publicity and get people to your door/ website.

You’ll inevitably lose money on the deals. But for the right sorts of businesses, it could buy you publicity and repeat sales that could deliver profits for months afterwards.

It won’t suit all businesses. Some things should never be discounted by 70 per cent. Some of the customers will be penny-pinchers who are more work than they’re worth.

Buyer, and seller, beware.

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.