I financed a purchase instead of paying cash (which I could have done) after the salesman told me that 24 month interest free financing was available. I knew that 21% interest would be added if I was late on any payment, so I was very careful to make every payment ahead of schedule. On what should have been my last payment, the bill indicated that I owed over $700 interest. They had set up the payment schedule so that it took 25 months to pay it off!
The fine print did say that the entire interest would be due if it took more than 24 months.
I asked that the payment schedule be set up to be paid in full in 24 months.
So now I owe over $700, and interest is accruing on the interest.
Be sure to check the payment schedule if you fall for an "interest free" financing offer.
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