Those promotional offers of "no payment, no interest" can be a great way to buy a new appliance, piece of furniture, or even carpeting for your home. But, you must be disciplined to pay off the entire loan before the deal expires.
Having an expiration date 6 months to 1 year away should be plenty of time for you to put money away to pay off the entire loan. The penalty of not paying off the loan means that you pay interest from the date of purchase, not the expiration date of the loan. Failure to pay off the loan can cost you hundreds of dollars in interest rates.
In January, we bought new carpet for our home. We took advantage of a "no payment, no interest for 12 months" loan. We were disciplined enough to put a couple hundred dollars away each time we received a paycheck. Because we did this, we paid off the loan in 5 months.
If you don't think you can pay off the loan, avoid these promotionl offers.
