Many retailers offer “don’t pay a cent” promotions, where you get the product today, but don’t have to pay for six months, or a year, or longer. Sounds like a great way to get what you want today, but not pay for it until later, right?
Maybe. If you are sure you will have the money when the debt is due, these deals are not costly.
However, if you are not able to pay when the debt becomes due, the finance company will convert the debt into a high interest rate loan, and in most cases they will charge you full interest from the date you bought the product! In other words if you don’t pay when due, you end up paying interest for the period you thought the loan was free.
So, read the contract carefully, and make sure you pay the debt in full when it comes due.
