interest free credit issues

[shikiraclare]

I hope that someone will be able to help me with my question?

I have just registered and been accepted for credit at an online department store. The credit limit is £750 and is under the buy now pay later scheme, so means that I can have the things I want now but must have them paid for by next year.

Okay, I understand this first part, however, the products that I select all must be interest- added in the event that you don't make your repayment of the goods by the one year credit agreement. This means that the goods that I want then become far more costly as a result overall and eats up my credit limit. The customer services operator I spoke to earlier today said that I would only have to pay the balance on my account if paid for all my items by next year (does this mean the interest is included?)

Example:

My credit limit: £750
Must pay 29.9% interest on all goods over a 104 weeks (can only select this option if want to proceed with my order, cannot proceed with order on interest-free items over a one year period. This means that my credit will be eaten up by interest added items so limits me to how much of the credit I can use, have I got this right and does anyone know what I am talking about?

[R1Geezer]

Sorry but do not touch this with a bargepole, you'll be overcharged for the goods and the interest. You'll be up to your eyeballs in debt with nowt to show for it. Just save for things and buy them, you'll feel much better that way

[sara3]

I'm confused... if you pay within the agreed period, it's interest free?

so just make sure you can pay within that period.

or am I missing something?

[SlackAlice]

Steer clear of this one. If you must go for an interest free deal go for the ones on offer with an interest free loan (provided you pay up within the agreed period).
Obviously, you might have to pay top price for the goods though.

[naomi24]

So if the cost of the goods you are buying includes interest, they are not interest-free - unless the interest is going to be deducted when you pay the outstanding balance at the end of the year. I think you should avoid it rather than end up with debts you didn't bargain for.

[factor-fiction]

I would be cautious but i don't think it's a con. Yes the monthly payment includes a notional amount added on for interest but once you've paid back £750 within the timescales I think you won't have anything more to pay.

[buildersmate]

However they are relying on the probability that you won't or can't pay it back on time. Can you trust yourself?

[lucca]

Don't touch it!

[dennisb66]

As already advised.don't touch it,can prove to be very expensive.Best you apply for a zero % rate purchase credit card Sainsbury are offering 12 months nil rate on purchases.