Many furniture and electronic stores advertise their in-house financing option as a deal like “90 days same as cash.” It can seem tempting to walk away with the items you want without having to pay upfront for them. These types of offers can put you in financial trouble if you are not careful.
Generally speaking, a 90 days same as cash plan is similar to a credit card 0% introductory offer. This is because the company is still making money on the sale. Unlike the 0% introductory offer however, when the promotional period expires, interest is then backdated to the date of purchase and added to your balance. This can end up costing you a significant amount of money and may even result in your being unable to pay the balance at all.
When a business says ”same as cash,” it means that you can walk away with your merchandise and not have to pay anything for it until a certain time period, usually 90 days or more. Most of the time this also means that you will not have to make any interest payments for the item if you are able to pay off the entire amount before the 90 day period is up.
If you are not able to pay the full purchase price of your furniture within the 90 day period, or if you miss any payments along the way then you will be required to pay the entire amount that you owe plus interest. This is often times a difficult and costly financial situation to get out of. The main reason that this type of financing is used is because businesses know that a large percentage of consumers will not be able to pay the full amount before the term period expires.
Furniture stores that offer this type of financing are typically relying on the fact that many consumers will not read their fine print. They are counting on people not paying off their purchases in order to make more money on each sale. This is why it is important to always ask about terms and conditions before entering into any financing transaction.
Whether you are shopping for furniture, electronics or appliances, it is usually best to shop around and look for the lowest prices before making any large purchases. This will help you to avoid getting into financial trouble. It is also wise to check into store promotions and deals before you actually go out shopping so that you can find the best possible deal. If you are able to pay with cash then it is the safest and simplest method of purchasing your goods. This will ensure that you don’t get stuck with any unwanted interest or debt down the line.
