Interest free shopping is gaining a lot of popularity these days. It refers to some form of credit in which you acquire the product that you need, pay some agreed proportion of the price, or even pay nothing at the time of purchase, and then pay the balance afterwards without any interest. If you are getting nauseated by the ever increasing credit card debt, and watching as your bills grow month after the other, like the other money savvy Australian consumers you can say ’enough’ and begin taking advantage of, and reaping the benefits of online interest free shopping. Not all the shops of this type are same, if you follow some few simple steps you will be capable of shopping smarter and saving even more whenever you go to shop online.
How does this type of shopping work?
The manner in which interest free shops operate may differ from one online store to the other, but in general, the online retailers who allow this type of shopping do so in two ways:
(i) They will request that the buyer makes the payments in monthly or bi-weekly instalments.
(ii) They may also offer the deal of buying now, and paying later, in which the buyer will not be required to make any payments until the expiry of interest-free period.
In Australia, most retailers offer interest free period which lasts any period of time between 6 and 12 months. NOTE THAT after the expiry of the interest free period you may be charged considerably higher rates of interest on the balance. Some online stores may charge rates of interest as high as 29% or even higher.
How do you choose the best deal online?
If you want to benefit most out of interest free shopping, ensure that you do the following:
Choose online retail shop which allows buyers to pay more:
If a retailer allows you to pay more you will be able to pay off the item you have purchased before the expiry of the interest free period. Note that after this period expires, higher rate of interest may be imposed. Deal with the retailer who will allow you to pay more so that you can pay off as soon as possible.
Do your maths:
If you have contract which lets you pay more, it is the time of figuring out the amount of money which you should pay off, and truly buy the item you need without any interest. There are various calculators available online for free. You can use them to calculate how much you will be required to pay in the monthly or bi-weekly instalments.
Some online retailers may impose additional fees in some circumstances. Thus, you should expressly ask for provision of information and clarification as to the additional fees which the online retailer may impose.