Comments on: Why ‘Same as Cash,..’ Isn’t

By: Randall

Randall — Tue, 18 Dec 2007 15:23:30 +0000

It’s usually something like 21%+ interest. It’s whatever the card/store standard interest rate is. That’s why it’s such a kicker. It can add up to hundreds of dollars on big ticket purchases, just waiting to be added back on EVEN IF YOU MISS PAYING OFF BY A DAY.

By: Mrs. Micah

Mrs. Micah — Tue, 18 Dec 2007 15:09:21 +0000

What I’d like to do is figure out some calculations for how much interest one would owe if one didn’t pay off in the same as cash period. One question would be how much interest they usually charge…don’t suppose you remember?

I love running calculations…such a geek!

By: Randall

Randall — Tue, 18 Dec 2007 14:06:53 +0000

@Andy,
Yep, the first time I got ‘trapped’ by this (I wasn’t immune either) I was shocked at the amount of interest that was accruing. And I’d gone BIG ticket item (new HVAC system for the house) so I ended up paying a ton of interest because I wasn’t as disciplined as I thought I’d be.

Live and learn.

Thanks for reading Credit Withdrawal, hope you enjoy the site.

By: Andy

Andy — Tue, 18 Dec 2007 13:43:36 +0000

Great post, i know so many people that buy things with this sort of deal and end up trapped paying hundreds of dollars more than they needed to. It’s a slick little marketing trick that seems to keep working, over…and over..and over on a large number of people. PAY ATTENTION TO THE DEAL YOU’RE MAKING!

By: Lynnae @ Being Frugal.net

Lynnae @ Being Frugal.net — Tue, 18 Dec 2007 06:12:21 +0000

We bought a sofa on a 12 months same as cash plan. The salespeople are so smooth, that when we signed the papers, we didn’t realize that the interest would begin accruing right away (and we should have looked at the fine print closer, too). Fortunately we were able to pay it off on time.

It makes me sad to think of how many people don’t pay it off, and then are surprised by the huge interest fee added. Yikes!