Personally, I would not enter into an interest-free agreement just in case something unforeseen prevented me from paying back the loan in the set period—like getting re- trenched from my job. You never know what can happen.
DAD’S TIP
Be careful how you pay for your new stuff. You may have found the best bargain in the world but if you choose the wrong way of paying for it you could end up costing yourself a packet. So a couple of tips:
• Don’t be lured by ‘interest-free, no deposit’ credit deals. If you don’t meet the repayments on time, interest is charged from the date you bought the item—and the interest rate can be as high as a whopping 24 per cent.
• Store cards are an easy way to arrange credit but their interest rates can also be as high as 24–30 per cent.
• Choose your credit card carefully. If you won’t be able to pay the balance off on time, then use a card with a low interest rate and no interest-free period. If you will be able to pay off the balance on time, then use a card with a high interest rate and an interest- free period.
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