Beware of This Sneaky 0% Interest Plan in Utah That Can Feel More Like a Stocking Full of Coal

Who doesn’t appreciate 0% interest on your purchases? This can save you significant money if you can pay the item off in the given time, and even if it does take you longer, you still received that discount at the beginning.  

Except, that’s not how some of these purchases work. Don’t get surprised by this deceptive 0% offer this holiday season. 

Deferred Interest Can Be Painful 

In the different 0% offers, there is one named deferred interest. This seems harmless enough. You can take the item home and you are given a certain amount of time to pay it off without accruing any interest. 

Here’s the problem. If you don’t pay it off on time, all the interest you would have paid gets tacked on the original price. That can be painful and many who sign up for this option don’t realize how it works. 

Some Believe Deferred Interest Loans Should Be Illegal 

WalletHub released some good information on these types of loans. They show how they work and describe the problems associated with it. They reveal some eye-opening statistics about the public perception of these loans. 

One of the disturbing results found in the study is that 52% of people don’t have an understanding of what a deferred interest loan means and how it works. A change in income could leave these people stranded with unexpected and overwhelming debt. 

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The article also lists the stores and retailers who offer these kinds of loans and even ranks how straight forward they are when presenting the option. As you do your shopping this holiday season, take the time to understand what kind payment plans you sign up for.