ajax_andy 0 Posted August 29, 2012 Share Posted August 29, 2012 Never done this before so just wondering how you pay it back. If it's 10 months interest free credit do you basically not pay anything back for 10 months then everything with no interest added... or do you have to still make monthly payments? Link to comment Share on other sites More sharing options...
wolfy 12 Posted August 29, 2012 Share Posted August 29, 2012 You pay back your monthly fee as normal but 10 months of it is supposedly without interest. Link to comment Share on other sites More sharing options...
Christmas Tree 3997 Posted August 29, 2012 Share Posted August 29, 2012 Never done this before so just wondering how you pay it back. If it's 10 months interest free credit do you basically not pay anything back for 10 months then everything with no interest added... or do you have to still make monthly payments? Depends on the company. Some like Argos you dont pay it back until 10 months, however stray a day past 10 months and you'll pay loads of interest. Other companies it is 10 equal payments. Link to comment Share on other sites More sharing options...
Gemmill 34464 Posted August 29, 2012 Share Posted August 29, 2012 You pay back your monthly fee as normal but 10 months of it is supposedly without interest. Supposedly. He doesn't believe in interest free credit either. Link to comment Share on other sites More sharing options...
ajax_andy 0 Posted August 29, 2012 Author Share Posted August 29, 2012 Haha ok cool cheers... I'll ask the company and see what the crack is Link to comment Share on other sites More sharing options...
Guest CabayeAye Posted August 29, 2012 Share Posted August 29, 2012 It's worth doing. It means the money is in your bank account collecting interest rather than theirs. As long as you either have the money already or know you have a stable income to guarantee you won't miss a repayment. If you already have the money, stick it in an ISA and take it from there monthly to repay the Direct Debit via your current account. Link to comment Share on other sites More sharing options...
Christmas Tree 3997 Posted August 29, 2012 Share Posted August 29, 2012 It's worth doing. It means the money is in your bank account collecting interest rather than theirs. As long as you either have the money already or know you have a stable income to guarantee you won't miss a repayment. If you already have the money, stick it in an ISA and take it from there monthly to repay the Direct Debit via your current account. However most interest free is is simply a marketing tool and the interest is added to the price first. Most smaller companies will therefore give you a discount if you pay cash. Link to comment Share on other sites More sharing options...
ajax_andy 0 Posted August 29, 2012 Author Share Posted August 29, 2012 It's worth doing. It means the money is in your bank account collecting interest rather than theirs. As long as you either have the money already or know you have a stable income to guarantee you won't miss a repayment. If you already have the money, stick it in an ISA and take it from there monthly to repay the Direct Debit via your current account. It's for camera gear for my photography business... I don't have the cash in my account, however I do have a sizable overdraft that £180 month for instance can come out of with the aim of business coming in at a rate that means hopefully I don't have to dive too far in to it and get hit with large interest charges on that. It'll probably save me money doing it this way as opposed to maxing out the overdraft and paying that off bit by bit. Think I'll do it using the 10 month interest free... seems to make sense Link to comment Share on other sites More sharing options...
Guest CabayeAye Posted August 29, 2012 Share Posted August 29, 2012 However most interest free is is simply a marketing tool and the interest is added to the price first. Most smaller companies will therefore give you a discount if you pay cash. That's right. Although some companies offer 0% across the board. This makes it worthwhile using on individually discounted items. Link to comment Share on other sites More sharing options...
Happy Face 29 Posted August 29, 2012 Share Posted August 29, 2012 I credit card shuffle like a mo-fo. Not paid any interest in years. Season Tickets are interest free with Barclaycard with no time limit. I've been using that beauty for over 10 years now. My last 16 month interest free on Santander Zero paid for an engagement ring but ends on the 31st so I've just got the Tesco deal which is another 16 months....that'll cover the honeymoon interest free. You just have to be strict. Know when the deeal runs out, set up a monthly Direct Debit for enough to cover it, and pay it back like a loan without spending any more on it. Monthly spendiong should go on another card you pay in full each month to avoid any interest accruing in the first place. The Santander 123 cards are mint too by the way. 1, 2 & 3 % cashback on all your utility bills, council tax, mobile phone etc when you pay by direct debit 1, 2 & 3 % cashback on all your shopping, petrol, pubs and restaurants when you pay by credit card. I tend to find it pays back much more than the average points based cards. Link to comment Share on other sites More sharing options...
NJS 3978 Posted August 29, 2012 Share Posted August 29, 2012 However most interest free is is simply a marketing tool and the interest is added to the price first. Most smaller companies will therefore give you a discount if you pay cash. The fiddle is there's no VAT on "hire purchase" in various forms so they pocket 20% of the price. Link to comment Share on other sites More sharing options...
Christmas Tree 3997 Posted August 29, 2012 Share Posted August 29, 2012 The fiddle is there's no VAT on "hire purchase" in various forms so they pocket 20% of the price. Not sure about that but if TV shop owner buys a TV at cost for £500 he would normally then double the price and sell it for £1000. When interest free became poplular he would simply put the price up to cover the cost of the credit (say £200) and sell it to people for £1200 interest free. DFS do it every day. Link to comment Share on other sites More sharing options...
Matt 0 Posted August 29, 2012 Share Posted August 29, 2012 A lot of companies would actually charge you more if you didn't take the interest free credit option as the finance contract would usually be longer than the interest free period and would be with a third party, who would in turn pay the seller the cash upfront plus a commission for sending business their way. The lenders then packaged them up and sold them wholesale. Something tells me that will not be going on as much these days. Link to comment Share on other sites More sharing options...
Kid Dynamite 5908 Posted August 29, 2012 Share Posted August 29, 2012 I do it the old fashioned way and save up! Link to comment Share on other sites More sharing options...
Guest CabayeAye Posted August 29, 2012 Share Posted August 29, 2012 I do it the old fashioned way and save up! I just buy stuff with my disposable income. Saving up is for povvos. Link to comment Share on other sites More sharing options...
Kid Dynamite 5908 Posted August 29, 2012 Share Posted August 29, 2012 I dont buy white hoods with my money though Link to comment Share on other sites More sharing options...
Guest CabayeAye Posted August 29, 2012 Share Posted August 29, 2012 I dont buy white hoods with my money though Stop calling me racist. I am not racist. It's not funny to band allegations about like that. Not cool. Link to comment Share on other sites More sharing options...
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