Consumers want to shop interest free? - ASIC has some great advice

Want to grab a new TV but can't afford it up front? ASIC recently gave out tips in a recent article to consumers on how to pay instalments for products that is interest free to save you heaps.

Stay in front of your finances with ASIC's facts on interest free. Here are ASIC's top three tips for consumers when shopping with interest free:

1. Interest free doesn’t mean fee free

While a store may advertise ‘no deposit, no interest, nothing to pay’, in most cases you will still be charged fees. These could include an establishment fee, a monthly service fee and a late payment fee. Before you sign anything ask about all the fees and charges so you can work out exactly how much you will have to pay back.

2. Watch out for the end of the interest free period

Credit providers are not obligated to tell you when the interest-free period is due to run out, so you need to keep on top of this yourself. If you fail to repay the total amount of your purchase by the end of the interest-free period, your credit provider will start charging you interest.

3. The minimum monthly payment is often not enough

If you’re paying by instalment, the minimum monthly payments suggested by the retailer who signs you up for the deal are often not enough to pay off the full purchase price before the interest-free period runs out. Make sure your agreed repayments are enough to pay off the full amount within the interest-free period.

Purchasing goods can be tricky when you don't pay everything upfront. Share some of your purchasing stories with us.