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September 04, 2006
Are You Getting Tricked Into Credit?
Be weary of those "no money down" and "don't pay for a year" offers.
Typically found at consumer electronics and furniture stores.
The unscrupulous companies have their sites set on you as more than a consumer of goods, they are looking to make a killing off you in the form of interest charges.
Here's how the story unfolds:
You are enjoying your favorite television program or perhaps sipping a coffee while perusing the newspaper and you see it. A phenomenal deal on a home theater system or new living room set.
"What's this", you say to yourself, "no money down, nothing for an entire year". It's off to the store and there the new items are great in your home.
Tick tock, tick tock, BOOOOOOM - Bam, outta the blue there it is a whopper of a bill exactly one year later. That's right, the bill is far more than the sticker price last year on the item. You, my friend, have just incurred a full year of interest charges on the stuff you purchased.
You are now in a bit of a revolving debt trap. The interest rates on store financing deals are usually far more than that of even a credit card. They got you.
You have unwittingly become a customer for life (or a very long time) as you will be paying off your furniture or electronics for many years to come.
Think before you jump on these "no money down" deals. If the sale is really great, go take advantage of it but DO pay cash now for it otherwise you could be doubling or tripling the cost of your purchase.
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