Deferred Interest Plans

Author: Consumercity
Posted: Tue Dec 07, 2004 5:00 pm
Post subject: Deferred Interest Plans


Has anyone tried one of those "no payments, no interest until 2007" type offers? Has anyone been burned by one of these offers and if so, how?

The reason I ask is that "same as cash" offers are really deferred interest plans. I was wondering if the "no interest, no payment" offers work the same way.

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Author: NightStar
Posted: Tue Dec 07, 2004 7:40 pm
Post subject: Deferred Interest Plans


That sounds like them Lowe's credit cards, make a purchase and don't have to pay for 6 months, but if you don't pay off before then, you have interest charged on the whole balance, and not just the remaining balance. I have also seen American General do the same thing on their loans... if you don't pay within 12 months, they are going to hit you with 21% interest on the original balance... close to loan sharks. Least the Lowe's is better at their standard 18% - not bad deal for some as long as you pay before time is up.