"Hi I work for a Debt Agreement administrator. There are 3 ways to end a debt agreement, you pay it out in full, you can apply to have the agreement terminated (however interest backdates from the start of your agreement), or you can offer to make a…"
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Interest-free deals - are they a debt-trap?
ASIC has a paper on interest free deals, which are not always what they appear to be...
"Tempted by that new plasma TV or home theatre system, but don’t have the money right now? Many major department stores offer interest-free deals that let you take goods home before you pay for them. But think carefully before you sign up for one – interest-free doesn’t mean cost-free."
FIDO factsheet on interest-free deals
THe Herald-Sun covered the topic a few years ago:
"BUY now, pay later deals from retailers can be tempting, especially when they come with substantial interest-free periods. But if you fail to pay off your balance before the interest-free period ends you face being slugged with interest rates of up to 30 per cent."
Herald Sun - Buy now and pay up big time later
Has anyone here been burnt by an interest-free deal? And has anyone had a positive experience with them?
Cheers,
FatCat
Views: 92
Latest Activity
Cliff Mearns replied to Cliff Mearns's discussion Bankruptcy -v Debt Agreement"Ben, let's not lose the loop. How financiers view bankruptcy is not relevant to the discussion of an individual's capacity to pay something. Bankruptcy is being utilised as a means of evading debt obligations. "
Bankruptcy ben replied to Cliff Mearns's discussion Bankruptcy -v Debt Agreement"I agree with the setiment however in reality there's nothing to encourage an individual to make a payment with a Debt Agreement! While technically it's different most financial companies regard it as the same as bankruptcy."
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