Many retailers, particularly those that sell expensive items such as furniture or electronics, are accustomed to offering customers “same as cash” deals that allow them to make payments over a period of time and not pay interest on the item while they do so. This can be a useful option for those who do not have ample funds or available credit to purchase pricey items right away, but as with any deal that is too good to be true, there are some important things that should be kept in mind.
Tim Gregg purchased a new bed last year through a 90 day same as cash program offered by a company called Acceptance Now that has desks in various furniture and electronic stores. He says he agreed to make monthly payments of $77 for 90 days. He says he was able to pay the balance in full just before the 90 days expired, but then he got hit with interest charges.
The problem with this type of offer is that it is very easy for people to get into trouble. Many people who take advantage of these programs are unable to complete the required payments and end up paying interest. The companies that offer this type of financing know that most of the customers who use their services will not be able to finish the required payments, so they are counting on that and charging high rates for those who fail to pay.
One of the biggest problems with these “same as cash” promotions is that they can lure shoppers into buying more than they can afford to buy. It is better to save up for a large purchase rather than trying to buy something on credit. It will not only help you build up your savings, but it will also keep you from falling into financial trouble.
It is also important to realize that most of these types of furniture financing offers come with a number of conditions that can be extremely difficult for consumers to understand. This can lead to a great deal of stress and frustration if you are unable to meet the terms of the agreement, so it is essential to read any contract carefully.
Another type of furniture financing that is not as good as simply saving up for a purchase is rent-to-own furniture. This type of financing will actually cost you more than purchasing the item in full, as there are usually some fees and charges included. This is often not disclosed and can be very frustrating for those who are unable to afford the furniture they need or want.
Those who are in the market for new furniture should try to purchase it as soon as possible and avoid the temptation of using a “same as cash” offer. This will save them a lot of hassle in the long run and prevent them from getting into trouble with finance companies that charge high interest rates for those who cannot meet their payment obligations.