Deal or not - Furniture - WMC Action News 5 - Memphis, Tennessee

Deal or not - Furniture

You've seen the it for it later!

If you're in the market for a big ticket item like furniture and can't pay cash, many stores offer a variety of financing options. 

Chuck Hadley with Ashley Home Furniture says, "It's really a nice option that you can give them basically an interest free or interest free money to use over a 12, 18, 24 sometimes even 48 months."

Hadley makes sure his customers know the rules of any promotion before they sign on the dotted line. 

Hadley continues, "Because in most cases we want the consumers to pay those off with no interest so it's a benefit to them."

But not every company has your best interest at heart.

Retail experts say look closely at the fine print before signing up for any deal especially one that allows you to put off making that first payment.

John Cicala, University of Memphis marketing instructor says, "They may tell you no payments until 2007, that doesn't mean they're not going to be charging you interest between now and then those are two separate ballgames all together."

In some cases, during the months that you're not sending in a payment, more interest is being added to your balance...Interest that in some cases you'll get stuck paying!

Cicala continues, "Find out up front what those fees are going to be, cause that's where they're gonna get ya."

Cicala says it's a better deal to start making those payments right away with an interest free same as cash plan. 

Cicala says, "Is there a 90 day same as cash or a 60 day same as cash when do interest rates kick in."

Not every payment option is right for everyone.  But no matter which you choose you'll get a better deal if you know the rules of and pay off your purchases before the interest comes due.

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