Tough Times Call for Common Sense (Part III of III)
Then there is the idea that they are giving you free money
or a good for free for a certain amount of time. Case in
point, your sofa needs replacing terribly – so you go to the
local furniture store and they tell you that you don’t have
to make any payments until June 2009! Wow, you are thrilled
that you don’t have to pay it, and you buy the couch.
However, what they failed to tell you is that you are
accruing interest during that time, and it is usually
somewhere around 20%. They might have a deal where it is no
interest, no payments for 180 days – but if you don’t pay
off whatever it is you have borrowed before that time period
is up, you are going to be looking at six months of interest
compounded on top of the amount that you have borrowed. You
can take the loan, but you have to pay it off before the
grace period is up or you are looking at one heck of a mess.
How about you get it now, you pay rent, and someday you will
own this little puppy? The rent to own idea is that you take
something with very little down payment and then you pay
rent on it. However, you aren’t just renting it; you are
buying it with your monthly payments going toward the
balance due. However, if you pay your monthly bill
religiously and then you miss one payment – it doesn’t
matter how many payments you have made they will come take
it back. You don’t own it until you have made that last
payment, which means they can come get it if you don’t pay.
The list of ways that people will take advantage of you goes
on and on. There are pawn shops, debt management companies,
debt consolidation, etc. Each of these things can work out
great if you know what you are getting yourself into and are
working with a reputable company. However, if you aren’t,
the will take you for all that you are worth.
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