Let’s get this out of the way first: Is a no-interest deal a good deal? Yes! Almost every kind of financing you can find is made available to you on the basis of you paying back more than you finance. In day to day life, there are few exceptions to this rule. For the most part, none of those exceptions are things you are looking forward to. The following may be interest-free or very low financing where you are:
- Medical bill financing
- Student loans
- Tax payments
These are payments you would rather not have to make at all. No one wants to make a tax payment, interest-free or otherwise. The kinds of things we want to make payments on are new furniture, a new car, a new wardrobe. But in almost every situation, those things come with finance payments that include a lot of interest. Here are a few ways to go interest-free on things for which you actually want to pay:
There are a few genuinely good places that offer interest-free financing. Some of those retailers make that possible through third-parties like Crest Financial, one of the fastest growing companies in North America. Some are catalog-based retailers that have been around seemingly forever. And some are rent-to-own places that inflate all the prices up front, merely hiding the interest in the price.
When you can get great product at an uninflated price and no interest like the kind supported by Crest Financial, consider it a good deal. With catalog deals, you are generally dealing with very limited choices. So hopefully, you like what is on offer at that time. With rent to own deals, you are seldom getting anything new or current, but used and out of date. Choose wisely.
Give Yourself an Interest-free Loan
Perhaps the best type of interest-free loan you can get is the one you give to yourself. You do this by setting aside money every month for the things you want, sort of like a layaway system once deployed by older department stores.
The most obvious advantage to such a system is that you pay no interest. The biggest disadvantage is that you are still making payments on someone else’s terms, replete with a myriad of charges and fees. If you cannot complete the payments, or change or mind, expect to pay cancelation and restocking fees.
By arranging your own layaway program with yourself, you can start with no money down and nix all the fees. You can pay as much or as little as you like to your piggy bank, miss payments or make double payments with no one to judge you. And when you have the purchase price, you can buy the latest and greatest widget instead of the one that was for sale at the time. Saving requires discipline. But it gets you what you want with the best possible terms.
Check the Couch Cushions
If you don’t have an interest-free options for what you want the most, you can use traditional financing and find the extra money to offset it in unexpected places. While you can’t take a break from making your car payment, you can cut back on gas by walking or riding a bicycle when driving is not absolutely necessary.
You can cook instead of eating out. One night at a fine restaurant is like a week’s worth of groceries. You can check to see if you are in a deregulation area. That would allow you to shop around for lower utility rates, and make lower monthly payments.
While interest is a fact of life, it can be avoided or offset with a little creativity and patience. Find the retailers in your area that would rather have your businesses than your interest payment. Set up your own layaway program. And offset the interest that you do have to pay by double-checking the couch cushions for spare change. There is always more laying about than you think.