Choosing an interest free loan

25 September 2008

Choosing an interest free loan rather than using personal loans when an interest free loan is offered by a retail business can sometimes lead to heavier costs than you would expect. While an interest free period may apply on the purchases you make, once that period has expired, interest is likely to be very high. You may think that you will plan to pay it off before the interest free period is over, but if you have several debts, you are likely to put off repaying the debt that is not accruing interest in favour of adding more to your other debt payments. This could leave you having to pay the full amount at the end of the interest free period, leaving you with a very high interest loan that has been delayed rather than the interest free loan you thought you were getting.

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