The public are being warned to be cautious before jumping into the prolific " No deposit - no interest - no repayments " schemes offering " goods now " and settlement years into the future.
That old adage - " If it looks too good to be true - is probably is too good to be true " applies.
These sort of schemes have great appeal to both the naive - and the desperate !
If you can't afford the goods on offer now - what makes you think you will be able to pay for them when the bill comes due some years down the track ?
It is a big mistake to think that all these schemes on offer are the same. They are provided by a large number of financial sources, and each tailors the scheme to their own requirements - and as a consequence they differ widely.
It pays to read the fine print - carefully. Some demand a monthly " account keeping fee " which can add up to a substantial sum over the period of what is really a loan. Others impose a draconian rate of interest for any balance left owing at the end of the " free " period, and still others have various fees and penalties for occurrences such as early or late payment.
It is also a good idea to check the price of the goods offered under such schemes with the cash price at a competitors store. In many cases there is a substantial difference, and the purchaser might be better off making more conventional credit arrangements.
The best advice the credit analysts offer is to " do your homework ", " don't rush into signing on the dotted line " and think long and hard whether you can afford whatever it is that tempts you before making a commitment.
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