You\u2019ve heard the irritating advertisements. You\u2019ve seen the flailing inflatables. You\u2019ve considered the irresistible offers.<\/p>\n\n\n\n
\u201cBuy today with no money down and zero interest!\u201d<\/p>\n\n\n\n
The ads are everywhere when you shop for large purchases like furniture. They offer you the option of spreading your purchase over several months or years, with a zero-percent interest plan. To buy it, you may need to enroll in a payment plan; sign up for their credit card; or open an unaffiliated credit card offering an introductory no-interest period. It sounds like a fantastic deal\u2014but is it?<\/p>\n\n\n\n
Here are the possible pitfalls of this route and the surprising benefits of financing a large purchase under the right circumstances.<\/p>\n\n\n\n
When is financing a bad idea?<\/strong><\/p>\n\n\n\n In general, it\u2019s unwise to buy something you can\u2019t afford. But what if the total price of the sofa is prohibitively expensive, but you can afford the monthly installments?<\/p>\n\n\n\n Here\u2019s where it gets tricky. First, nearly every no-interest offer is only temporary. Once the promotional period expires, you\u2019ll likely see a double-digit interest rate. Second, most of these plans come with a deferred-interest clause stipulating that missed payments will be charged with retroactive interest after the no-interest period ends. That means any missed or late payment will cost a lot more than you expected.<\/p>\n\n\n\n With this in mind, it\u2019s best not to finance a large purchase if any of these apply:<\/p>\n\n\n\n <\/p>\n\n\n\n When financing can work in your favor<\/strong><\/p>\n\n\n\n Here are two reasons you may want to finance a purchase you can pay for today:<\/p>\n\n\n\n <\/p>\n\n\n\n Remember:<\/strong> Only go this route if you are absolutely sure you can meet the monthly payments.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" You\u2019ve heard the irritating advertisements. You\u2019ve seen the flailing inflatables. You\u2019ve considered the irresistible offers. \u201cBuy today with no money down and zero interest!\u201d The ads are everywhere when you shop for large purchases like furniture. They offer you the option of spreading your purchase over several months or years, with a zero-percent interest plan. […]<\/p>\n","protected":false},"featured_media":7128,"template":"","education-category":[194],"class_list":["post-6782","education","type-education","status-publish","has-post-thumbnail","hentry","education-category-tips-resources"],"yoast_head":"\n\n
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