Watch out for traps with deferred financing

Watch out for traps with deferred financing

(WWBT) - "By now, pay later" sounds good and gets you out the door with that big ticket item, but is deferred financing really the best option?

Stores love to push something called deferred financing this time of year for people buying everything from furniture to expensive electronics.

The idea is you buy something now and pay nothing for 12 months, but as sweet as this deal sounds it could be a really bad idea.

As with most promotions, a few land mines can be found in the fine print.

With most of these deals, you're required to make minimum payment each month and have the balance paid off before the promotional period ends.

If you miss a payment or that deadline, you'll get socked with a hefty interest rate, often as high as 29 percent.

That interest rate applies to the full amount of the purchase no matter how much of the balance you've already paid off.

Don't let a deferred interest deal suck you into a purchase you really can't afford.

If you have signed up for one of these make sure you mark that zero percent deadline on a calendar or put it in your phone so you get it paid off in time.

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