Abroad sales loans have become a big trend. And the trend is gradually shifting to us. When shops offer tempting discounts, a lot of people are without money, but they would like to buy the discounted goods because they have been waiting for a similar event for several months. So they take a loan. It can pay off when it comes to being smart. But it can also make you really hot. Success depends on the price of the loan and the amount of your regular income and expenses.
Interest-free loan? It is not free of charge!
When you come across an interest-free loan that you would like to pay for these tempting sales, always look at the total cost of the loan, again the APR (annual percentage rate of charge). Indeed, interest-free loans are subject to charges to a greater or lesser extent. So even here the APRC may be at the level of a few percent, which could result in an unpleasant surprise.
First free loan
Although the first free loan is most often provided for one month and for amounts of 10,000 crowns, on the Czech market, however, you can find such lenders who lend you a higher amount, and even up to three months. And really free.
This is a convenient way to repay the goods from the sale, because the discount remains intact, for borrowed money you do not pay an extra crown. The maximum repayment period is only three months, which may not be sufficient for larger purchases.
But beware, even a smaller purchase may eventually wave to the budget if you did not initially count on the installment. Your income and your regular expenses are crucial. If you are not creating financial reserves, then what would you like to pay for this purchase?
Payments without increase
Some shops offer a financial service in the form of hire purchase, usually in cooperation with a non-banking company to arrange for you a free loan. You buy a sale item at an attractive price. And you repay it gradually without paying any extra costs.
This is one of the most advantageous options for buying a debt sale, because you can repay even a year or two (if it is a larger appliance or perhaps furniture). The price will remain and you can calmly and very slowly repay. what you will enjoy right in your home or what you need to wear.
But here we have to write a big exclamation mark. If your budget is already tight, it is not wise to take a hire purchase, even if it is only a few hundred a month. Or give up another monthly expense, at least for as long as you pay the installments.
Tangled in non-performing debt, that’s right away. But getting out of them is then a long run. And not always quite successful.