Prime Rate Credit

We recently purchased a house, and on top of all the abundance of mortgage information, there are other financing options that you have to look into when buying things that are necessities or “home improvements” for you new home. One of those necessities is furniture and electronics such as TV’s, DVD players and stereos, and also outdoor stuff like riding lawn mowers, and gardening tools.

All this stuff really adds up cost-wise, as you can imagine, so most people opt to either put it on a credit card or use an available financing option that the place they are buying the product from either offer in-house, or through a secondary broker.

For example, we purchased a lot of our furniture through a local and huge furniture store that’s been in business for over sixty years, and they offered a six months same as cash financing option that we were more than happy to take them up on, considering the decent chunk of change we spent in the store.

However, when you read the fine print, you realize that you really have to get the thing paid off in six months or else you get charged retroactive interest to the date of purchase, and the interest rate is sky-high for this particular line of credit.

Most of them do work in some way where it benefits the purchaser to definitely get this paid off in that six month time frame, or in the end, they are paying much more interest, sometimes even more than what the actual goods they bought are worth!

You may want to look into balance transferring any high interest debt that’s left over if it’s through a bank of line of credit that a lower interest balance transfer credit card will take as a balance transfer, if for some reason you don’t get it paid in those six months or however long the interest free grace period happens to be. Or, you may want to see if you qualify for a longer grace period if they have the option available, say one year or two years, then you can budget yourself a little better with the payments.