Deferred Interest Plans Take Advantage of Consumers 

A lively plaza full of vendors and customers shopping during the winter time.

This holiday season, we’re all hoping to show our loved ones how much we appreciate them. For some of us, that might even mean springing for a gift that’s a bit beyond our normal price range. We see price tags that make us wince, but we decide that our loved ones are worth it. 

Big retailers can’t wait to take advantage of our generosity by offering “deferred interest” payment plans. 

The allure of a deferred interest plan is easy to see. Rather than having to pay the steep price of a television or home appliance up front, the shopper can spread the “damage” into more manageable installments. And in theory, the best part is, if the shopper stays on the payment schedule, he/she won’t owe interest. 

But when it comes to deferred interest plans, the old saying applies: “If it seems too good to be true, it probably is.” Because what many shoppers don’t realize is that if they come up short by even $1 on any of their payments, the interest-free arrangement with the retailer evaporates, and they’ll suddenly owe a sky-high rate of interest retroactive to the date of purchase. 

As a result, deferred interest plans, no matter how appealing they seem, often leave consumers with a mountain of regret, anxiety, and debt. Consumer advocacy groups have pushed for a ban on deferred interest plans, but for now, they’re still offered by big retailers like Walmart, Sears, J.C. Penny, Macy’s, Best Buy, and Home Depot. At Shub & Johns, we’re troubled by the fact that these corporations benefit from deferred interest plans at the expense of their customers.

If you have struggled with debt stemming from a deferred interest plan, we’d like to hear more about your story. Fill out the attached form to contact Shub & Johns LLC today.

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