What are you REALLY going to be paying? What if you pay off the furniture before the "deadline?"
2007-02-11 11:54:34 · 5 answers · asked by mgs4Real 3 in Business & Finance ➔ Credit
Jerry829 is correct.
But you also need to know that the price of the furniture INCLUDES a premium for the delay in payments and interest. Try offering cash for the same furniture and you should see the price drop!
2007-02-11 12:03:52 · answer #1 · answered by rjrmpk 6 · 0⤊ 0⤋
First, if this is one of the larger well-known furniture stores, you are probably in good shape. The ad is exactly what it says. You'll not be making any payments/interest until sometime in 2008. And yes you can pay it off before the deadline with no interest.
However, if you don't pay it off before the time alloted, all the interest FROM DAY ONE will be added to total.
It's a great way to buy furniture, but you must have the willpower to put enough away each month to pay it off on time. Otherwise, what would be use?
Good Luck.
2007-02-11 20:00:35 · answer #2 · answered by Jerry829 3 · 1⤊ 0⤋
Although reading the fine print is always advisable, "no intrest/no payment offers are typicaly just what they say they are. Provided the entire balance of the agreement/transaction is settled by the date stated in the advertisement or contract, the purchaser pays only the agreed-upon price. The "catch" if there is one, is that most people take advantage of the "grace period" and then begin payments in some kind of pre-arranged plan. At that point, the arrangement becomes just another credit purchase. The "buy now, pay later" scheme has been luring people to make monetary committments for many, many years. If I can't afford to obligate myself to a monthly payment today--I don't want to do so 6 or 9 or 12 months from now either. Am I spending money from a raise I'm not sure I'll get? Next years' tax returns? Hmmm...gotta wonder.
2007-02-11 20:02:20 · answer #3 · answered by Teachmepme 4 · 0⤊ 0⤋
it means you don't pay until 2008. but if you cant pay them before then, then when you start paying in 2008, they will tack on all of the interest you would have been paying all along to the balance, and then you will be paying interest at about 19 to 30% on the balance.
in my humble option, ITS A DEBT TRAP! DON'T DO IT!
2007-02-11 21:39:57 · answer #4 · answered by Jen 5 · 0⤊ 0⤋
The first Answerer was absolutely correct. That was exactly what I was going to say.
2007-02-11 22:03:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋