Beware of Deferred Interest Promotions

When you’re making a major purchase, the promise of “no interest if paid in full” from a deferred interest promotion can seem incredibly appealing. However, these promotions come with a major catch that can end up costing you dearly if you’re not careful.

With a deferred interest promotion, you are charged no interest for an introductory period, usually 6-24 months. However, the interest is still accruing during this time. If you pay off the full balance before the promotional period ends, you won’t owe any interest.

But if you have even $1 remaining on the balance when the promotion ends, you’ll be charged all of the deferred interest going back to the original purchase date. Depending on the size of the purchase, these retroactive interest charges can add hundreds or even thousands to your total bill…Story continues…