by Barbara Nevins Taylor
An ad promotes “No Money Down,” for financing a laptop.
I understand the marketing and I get the need. But these ads are scary because they can lead you down the path to financial hell.
No money down allows you to “buy” something right away. But a purchase without a down payment frequently means you’ll pay more interest than you should. Generally, when you don’t put any cash down the interest rates are the highest levels that can legally be charged.
That means the interest adds up and up and you often pay more in interest than the price of thing you’re buying. There’s also the chance that your interest payments will pull you further and further into debt. Making it even worse, by the time you finish paying, the stuff is often obsolete or broken.
Right now “Gaming laptops,” seem like the big no money down lure.
Generally no money down deals involve real estate, educational courses, cars, furniture, TV’s appliances of all kinds and any relatively big-ticket item that will command a high interest payment.
While any customer will do, a subset of these deals specifically target members of the military. And that’s particularly creepy.
Our advice–Say, “No,” and steer clear of “No Money Down,” deals.
If you have trouble making a down payment, or a purchase because your credit isn’t good, our videos on credit can help you begin to build a decent credit history. We’re happy answer any questions you have.