If you ever use a ‘no interest no payment sale’ to purchase items, make sure you read the fine print.

All ‘no interest no payment’ deals will include a clause that says if full payment is not received before the due date that interest will be charged retroactive back to the date of purchase at an extremely high rate.

The questions you have to ask yourself are:

how much can you afford?

how likely is it that I will have the money on or before the due date?

If you are going to purchase items on a buy now pay later basis and you want to avoid falling into a high interest trap you have to have a plan. The best solution is to setup a monthly savings plan where you set aside money each month so that you will be able to make the payment on or before the due date. But be careful, this requires a lot of discipline. It is easy to miss payments when no one is calling looking for them and if money is accessible in a savings account it can disappear quickly when other expenses come up.

While ‘no interest no payment’ sales may sound like a good deal they can often be the beginning of serious money problems. My best advice to avoid money problems is to be careful when using credit.

Save up for bigger purchases and don’t buy any item that you can’t afford to pay for today.

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