They are so seductive, specially for those with a long list of presents yet to be bought - and a dwindling supply of ready cash. In the days leading up to Christmas the big traders boost their advertising with offers such as " Buy now - Pay later " , " No Deposit - four years to Pay " - and " Interest Free ".
It seems too good to be true - and it is !
Like all such tempting deals, it pays to read the fine print at the bottom of the contract, and it certainly helps to get someone else to explain the details if you have problems understanding exactly what it all means.
Entering into these type of deals can work for you - provided you understand your obligations and comply with them precisely, but that old saying - " There is no such thing as a free lunch " - still applies. There will still be hidden charges that will boost the final price much higher than if you paid for that item with cash.
Many deals insist that the balance owing be recorded on a store charge card - and most store charge cards impose a hefty annual fee, just like the fees that banks gouge from customers using their credit cards.
Then there is the interest rate that applies - when the interest free period ends and the balance is still owing. It is just so - so easy to make that purchase and not finish paying by the nominated end date.
Christmas is said to be the time of giving. January is the time of paying - when those credit card bills come due. Dodging the evil hour by using one of these " pay later " schemes has a price - and usually the item bought ends up costing a lot more than the ticket price - when all the extras are added on.
And these are the " danger days ". Just two more shopping days - until the big day arrives.
That's when desperate people make desperate - and unwise - decisions !
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