Warning: Don't fall for the 0% financing trap on furniture

I keep seeing people in this group brag about buying furniture with 0% financing offers. But here's what nobody warns you about. I bought a couch from a place called Furniture Mall in Columbus last year. The 0% was for 12 months, but I missed one payment by 3 days because I was out of town. They hit me with back interest for the full $1,200 at 28% APR. That added up to over $300 in fees. The fine print says if you're even one day late, they charge all the interest from day one. Has anyone else been burned by this or found a way to avoid it?

2 comments

2 Comments

noah_palmer4220d ago

My buddy actually had the same thing happen with a mattress place in Cleveland. He was one day late on a 0% deal and they slugged him with $500 in back interest. I read somewhere that these companies make most of their money off people who slip up, not the people who pay on time. The trick is to set up auto-pay right when you buy the stuff, then just double check the account every month anyway. Some places also let you call and ask for a one-time grace period if you catch it quick enough, but they don't advertise that.

spencer_wood19d ago

Wait, do these companies actually bank on people missing payments? I feel like that's gotta be part of their business model, right? My cousin bought a couch on a similar deal and missed one payment by like two days. They charged him the full interest for the whole year, like $400. He called to complain and they basically said too bad. It feels like a trap honestly.