Basic Set-Up Costs: Interest-free periods . . . and the catches Part (4)

Interest-freePersonally, 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.

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Basic Set-Up Costs: Interest-free periods . . . and the catches Part (3)

Interest-freeBelinda thought that this was much better than using her credit card for the purchase. Luckily Belinda was smart enough to read the fine print, and realized that she had to make all the payments within the twelve- month period or she would be facing a massive interest debt. She managed to put away enough money to do it apart from one month where she had to borrow some money from her parents to cover it.

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Basic Set-Up Costs: Interest-free periods . . . and the catches Part (2)

Interest-freeAccording to the law, under the Consumer Credit Code credit providers have to give you all the details of the fees and charges that you are going to face. They are also responsible for making you aware of your rights and responsibilities.

If you do run into trouble with interest-free periods, the best thing to do is to contact the Department of Fair Trading or Office of Consumer Affairs in your state or territory and see what advice they can give you. Remember how Amy bought the fridge for her new place on lay- by?

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Basic Set-Up Costs: Interest-free periods . . . and the catches

Interest-freeWhat is the first thing that you think of when you hear that some- thing is free—Cool, where can I sign up? I know I usually do. I’m sure that you have all seen the advertisements for interest- free periods which seem to be offered by most department stores and retailers these days.

You have probably heard the familiar lines of ‘Buy now, pay later’ and ‘Nothing to pay for six months!’ When you are about to move out of home and have very little furniture to your name, these deals sound unbelievably attractive—but who ever gives anything out for free these days?

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