Browse Forums General Discussion Re: What does no interest,no repayment mean? 2Jul 14, 2009 11:18 pm In 2011 interest (usually a high rate) will be charged on the whole amount, no matter what the outstanding balance is. We have done this in the past, and the key is to make sure it is all paid off by the end date (ie. 2011). buzz PS there may also be monthly service fees for this type of deal. Re: What does no interest,no repayment mean? 3Jul 14, 2009 11:20 pm Oh and you end up paying for it anyway though as it is built into the price - they wont give you any discounts 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: What does no interest,no repayment mean? 4Jul 15, 2009 8:06 am If you default on a monthly payment, you get slugged another $30, even if the payment is a day late. I would assume this 'fine' will go up in the next few months Also, just be very careful of making those 'extra payments' if you have more than one purchase on your account. We have 2 'no interest' payments on one card....one 6 months and another for 5 years. Guess which one they take off first for any extra payments Our 6 months should have already been paid off but no, all those extra payments have been directed towards the '5 year interest free' If it wasnt for Mr B in keeping a close check on these payments then we would not have been aware this was happening. I believe their are many more nasty surprises....we have always paid everything off months/years ahead of time but now they have changed their policies so please be aware. It use to be a great system but now I dont trust it. We always get it 'In Writng" that it has been paid off at least a month before it was due. Mrs B Re: What does no interest,no repayment mean? 5Jul 15, 2009 9:02 am With the "No interest, No repayment" ones you dont have to make monthly repayments - we did one of these once and you only have to pay amount at end of a year - guess what, a few weeks before the payment is due, we get a letter saying If you dont have the money dont worry - you can pay it off in monthly installments (with whopping interest rate mentioned only in tiny print at bottome of page) or you may have the money but you deserve a holiday or a luxury treat for yourselves, spend it on that and not a lump sum for the TV, pay the TV off in easy installments (with whopping interest rate but we wont mention that if you dont ask) Needless to say, we were not that stupid and had the money and paid it out - but obviously many people are that gullible and/or buy things they cannot pay off in interest free period - that's where they make their money!!!! And monthly service fees have now been introduced and they sell item at full price, no discount for 'cash' When we did it years ago, interest rates were higher so we saved by receiveing interest on our saveings in that 12 month period and then paying it out. But the service fee and lack of cash discount would wipe out any money you would make with interest on your saveings now. Re: What does no interest,no repayment mean? 6Jul 15, 2009 9:16 am I've used the Harvey Norman deals a few times over the years and they work well for me. Rather than dropping thousands in cash on appliances/furniture, etc I can pay a monthly payment and I don't miss the money (I would notice the thousands dissapearing out of my account Currently on my card I have on purchase, and I'm a few months from paying it off. We bought a bed for about $3500, and I am down to the last few hundred. I have never noticed the monthly payment coming out of my account, and we used the cash we had spare to go on a holiday. As people said, you have to ensure you pay it off in time though as the interest rate past the "interest free" period is about 30% pa. There is also a $2.95 monthly fee. These companies make their money out of people who default on their payments. Blog is now up - http://www.jbdave.blogspot.com/ Re: What does no interest,no repayment mean? 7Jul 15, 2009 1:22 pm We've used them in the past as well, rather the money against my mortgage than in their tills. The key is to make REGULAR payments that will cover the whole amount. For example we had a $3200 television to be paid off over 24 months. Now by my calculations I should be paying $136.78 (inc the $2.95 account keeping fee and .50c bpay fee ) per month. But we were getting invoices for only $65 odd dollars each month?? I can imagine people going 'oh yeah, that's all I need to pay and that's all they do pay. At the end of the 24 months they will have this GINORMOUS bill complete with 456% interest In a nutshell, use the interest free offers if you are good with budgeting and money. Building a Modified Lawson Modern 29 @ Botanic Ridge, Cranbourne South, Victoria Re: What does no interest,no repayment mean? 8Jul 15, 2009 1:30 pm Basically there are two types of 'interest' free terms, one where you have no interest, no repayments and one where 'no interest ever', but has monthly repayments.
Now l've used both, ive not ever paid interest! so with the no interest no repayments you will get a monthly bill saying 'no repayment' but we ALWAYS made a repayment no matter how big or how small but the time the 'interest' free period is over we had paid the item off! if you dont WATCH OUT you'll basically never pay off the furniture cause the interest rate is soo high! The other one no interest ever will give you monthly repayments BUT the repayments in some cases are just a mini repayment and by the time the interest free period ends if you pay that amount through out you will not have paid the full amount. The interest free method of buying is good, you just have to be smart about using it, therefore even if it said no repayments make repayments no matter how small, and when they have a set monthly- work out the cost of your furniture over say 12months and make sure your paying that amount. Overall always make sure you pay the furniture off before the 'interest' free period ends otherwise be prepared for HIGH interest and what seems like a never ending loan! Re: What does no interest,no repayment mean? 9Jul 15, 2009 1:31 pm meghan We've used them in the past as well, rather the money against my mortgage than in their tills. The key is to make REGULAR payments that will cover the whole amount. For example we had a $3200 television to be paid off over 24 months. Now by my calculations I should be paying $136.78 (inc the $2.95 account keeping fee and .50c bpay fee ) per month. But we were getting invoices for only $65 odd dollars each month?? I can imagine people going 'oh yeah, that's all I need to pay and that's all they do pay. At the end of the 24 months they will have this GINORMOUS bill complete with 456% interest In a nutshell, use the interest free offers if you are good with budgeting and money. Yep i think that's the money making part of it, people blindly just pay the requested monthly repayment and don't realise it doesn't cover the entire amount by the end of the interest free period then get charged gazillions of interest. It works if you know what you're doing. We've never used it though. I'm of the thinking that if you are paying it off you somehow convince yourself to buy a more expensive model of whatever it is than you would otherwise. Well I would, so dont' trust myself! I like paying cash for things, and making do till I have enough. Re: What does no interest,no repayment mean? 10Jul 15, 2009 1:38 pm Quote: Now l've used both, ive not ever paid interest! so with the no interest no repayments you will get a monthly bill saying 'no repayment' but we ALWAYS made a repayment no matter how big or how small but the time the 'interest' free period is over we had paid the item off! or do what we did in the past - buy it on this plan even though you have the money away in the bank - put the money in a fixed term deposit or a mortgage offset account and then take it out and pay lump sum payment to pay for item when you get final payment. However with interest rates on term deposits and mortgages being so low now, I dont think the account keeping fee and the loss of discount that you get when you buy something for cash, would see you in front. Re: What does no interest,no repayment mean? 11Jul 15, 2009 1:46 pm We went to Harvey Norman and bought a TV a year ago when it was an interest free and no repayments deal going on for 3 years. We had the cash and I told my bf to ask if they would give it cheaper due to us having cash, he asked and they said no but he said with credit card. My bf says credit card is the same thing as cash as the company gets the money straight away. I would have said we have the $2300 cash and can we get a discount, not do you give a discount if we pay credit card!! We alway have an argument about this coz I think cash is different to credit card. DA approved Waiting on a few more Builder's quotes. Re: What does no interest,no repayment mean? 12Jul 15, 2009 1:55 pm Yes, mandystoj, for the purposes of discounts for cash, the stores do treat cash and credit/debit card the same. We have often negotiated discounts for cash and actually paid on by card - I mean, if it is, say, a plasma Tv or a lounge suite, you are not going to have thousands of dollars cash in your pocket are you? Re: What does no interest,no repayment mean? 13Jul 15, 2009 2:05 pm Helyn Yes, mandystoj, for the purposes of discounts for cash, the stores do treat cash and credit/debit card the same. We have often negotiated discounts for cash and actually paid on by card - I mean, if it is, say, a plasma Tv or a lounge suite, you are not going to have thousands of dollars cash in your pocket are you? Ok my bf is right, afterall he is 7 yrs older than me. Thanks for that helyn. You wouldn't have it in your pocket but could withdraw it, but card is better! DA approved Waiting on a few more Builder's quotes. Re: What does no interest,no repayment mean? 14Jul 15, 2009 2:06 pm meghan We've used them in the past as well, rather the money against my mortgage than in their tills. The key is to make REGULAR payments that will cover the whole amount. For example we had a $3200 television to be paid off over 24 months. Now by my calculations I should be paying $136.78 (inc the $2.95 account keeping fee and .50c bpay fee ) per month. But we were getting invoices for only $65 odd dollars each month?? I can imagine people going 'oh yeah, that's all I need to pay and that's all they do pay. At the end of the 24 months they will have this GINORMOUS bill complete with 456% interest In a nutshell, use the interest free offers if you are good with budgeting and money. ^^ I agree totally with this and if used responsibly it can save quite a bit of interest on a mortgage if using an offset account or redraw. The only retailer I know of that has done the discounted price on interest-free terms is The Good Guys. Pretty much everywhere else we shop won't give a discount for using finance. This is because the merchant gets charged by the finance company so they pass this onto the customer. Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: What does no interest,no repayment mean? 15Jul 15, 2009 2:14 pm Quote: You wouldn't have it in your pocket but could withdraw it, but card is better! Ah, yes, but if you have to go and withdraw it you might look around or change your mind, better to get you to sign up on the spot while you are in the store Re: What does no interest,no repayment mean? 16Jul 15, 2009 2:21 pm Helyn Quote: You wouldn't have it in your pocket but could withdraw it, but card is better! Ah, yes, but if you have to go and withdraw it you might look around or change your mind, better to get you to sign up on the spot while you are in the store Yeh I know hehe. DA approved Waiting on a few more Builder's quotes. Re: What does no interest,no repayment mean? 17Jul 15, 2009 4:09 pm Just a side note on the topic of interest free purchases; Don't forget to include them as a liability in your home loan applications. It is very common to forget all about it but as a form of credit that will stay with you for years, it needs to be declared to the lender. Re: What does no interest,no repayment mean? 18Jul 15, 2009 4:13 pm thlo Just a side note on the topic of interest free purchases; Don't forget to include them as a liability in your home loan applications. It is very common to forget all about it but as a form of credit that will stay with you for years, it needs to be declared to the lender. What about a credit card? Say you have a limit of 20k, but you consistantly pay off between $2000-$5000 eachmonth for over 2 years, will that disadvantage someone who is going for loa loan?? I understand if someone doesn't fully pay their cardeach month but what if you do? DA approved Waiting on a few more Builder's quotes. Re: What does no interest,no repayment mean? 20Jul 15, 2009 4:21 pm mandystoj thlo Just a side note on the topic of interest free purchases; Don't forget to include them as a liability in your home loan applications. It is very common to forget all about it but as a form of credit that will stay with you for years, it needs to be declared to the lender. What about a credit card? Say you have a limit of 20k, but you consistantly pay off between $2000-$5000 eachmonth for over 2 years, will that disadvantage someone who is going for loa loan?? I understand if someone doesn't fully pay their cardeach month but what if you do? Some lenders will make an exception for responsible borrowers like that. If it can be shown that in the last 3 statements balances were fully paid, they can exclude it from servicing calculations. I've just built 3 stairs off a landing out the back and been told by the private certifier I need hand rails sorry tried to attach a pic but couldn't mine don't have sides… 5 5720 i had the my concreters concrete right up to the fence. I have pits all along my path, so the water tends to drain away from the house and into the pits. There's only one… 7 12792 Depends how much direct sun it gets. Is there any shading (eaves or trees)? If the sun hits a window directly it doesn't matter too much if it's double or single… 1 12671 |