Interest free financing-Spencer Furniture is offering 3 yrs. NO GIMMICKS.

Interest free financing presents us with an opportunity to borrow money for free while investing with the possibility of greater gain. On the other hand, using cash for purchases can save us money immediately by increasing the likelihood of a discounted purchase.
Is one superior to the other? Let’s take a closer look…

Interest free financing

One of the first purchases I made after joining the ranks of working professionals was a killer sectional sofa. Why a couch first? Several reasons:

• My dad always kept our house furnished with the most terribly uncomfortable couches in the history of mankind, and I vowed to be different.
• I had a brand new apartment furnished with little more than a few comfy pillows and a TV.
• Chicks dig cool couches… right?

I figured that I needed the couch, and was motivated by an offer of 0% financing for two full years at a local furniture store. I jumped at their offer of free money and, despite being new to the world of promotional credit financing, I successfully paid the couch off before the interest free period ended. I thus avoided any interest.
Although I avoided paying interest I could have better leveraged the deal by following a few simple rules before rushing into the purchase.
Here are some considerations before borrowing interest free:

• Don’t borrow more than you could pay cash for. Using the interest free financing as a free ticket to spend will get you into trouble fast, so make sure you only spend what you could afford to pay in cash. If you have no cash saved consider saving before you buy. Having the cash saved acts as a hedge against job/income loss.
• Be organized and knowledgeable. Become intimately familiar with the terms of your purchase and pay careful attention to the details of the “interest free” period. Know how long you have before interest kicks in, and whether or not you will be charged interest on the entire purchase amount after the promotional period ends – regardless of amounts owed. Deferred billing programs can be tricky, and knowledge is your friend.