No money down, no interest, no payments til next year! This is what’s known as a “No, No, No Deal.” But before you say “yes, yes, yes,” you should know these deals can end up costing you a lot, lot, lot. Here’s the main problem. These offers are strictly structured so that if you don’t pay off the full amount when the introductory period ends, you do owe interest. Worse yet, that interest is retroactive to the date of the original purchase. Worst of all, often the interest rate is sky high –twenty percent or more. Another downfall is that the product price is often inflated to make up for the free financing. An electronics store offered a thirty-five inch television for $999. But consumers who opted for free financing had to pay $1499. Bottom line: These highly hyped deals only save you money IF the product is competitively priced AND IF you pay it off in time.
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