I’ve longed believed that the “same as cash” finance deals that are so prevalent are really just mecahnisms for the stores to get people sitting so long on their new sofa that they forget they haven’t paid for it, then get socked with massive interest payments/penalty fees since they missed the deadline.
This morning we went out and bought a new dresser and saw a plan with no interest until 2009. While we’re rapidly nearing the end of 2005, and I’m sure you have to pay interest in January of 2009, that’s three full years (and a couple months) of no interest. That’s just insane. All for a $299 purchase.
Meanwhile, last night on television showed a commercial for a nearby furniture place that was upping the ante – offering no interest until 2010. Tell me, do you want to buy a bed today, and find out in 2010 that you have forgotten to pay for it, and then get socked with some ridiculous penalty? That would be horrible.
All these overextended credit cards and all the paycheck-to-paycheck living, hoping to get your paycheck to the bank before 2pm, so the checks you wrote three days ago will be covered, isn’t going to last forever. I’m really not a gloom-and-doom type, but there has got to be a breaking point.
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One response to “Financing Limbo”
Those no-interest deals can be great if you go into it with a solid plan. I got a line of credit when I had my root canal done, and the first year is 0% interest. If we were to just pay the minimum every month, we would get shafted… but we worked out our own payment plan to get it paid off in full by the time the promotional period is up.
However, three full years of 0% interest on a $299 item is just WRONG.