90 days same as cash.

No payments for one year!

Buy now and pay nothing—no interest, no payments—until next year!

Should you take advantage of these offers? Of course, that’s up to you. But my personal policy is this:

If I want or need the item and have the cash to buy it, I buy it and take advantage of the delayed payments as long as there is no interest or other charges involved. I take the money I would have spent for the item and invest it until it’s time to pay it off.

I don’t charge or otherwise finance depreciating assets, such as furniture, clothes, jewelry, and electronics. But I don’t pay for them before I have to, either.

Let’s say I want new furniture and I’m going to spend $5,000, which I have in disposable income. The store is offering no payments, no interest, for 18 months—all I have to do is pay the sales tax up front. I buy the furniture, take the $5,000 and put it in either real estate or stocks (or even just a simple savings account or certificate of deposit), and make sure my records are noted so that when the debt is due, I pay it off in full. My money has worked for me for a year and a half while I’ve enjoyed having the new furniture.

If you use this strategy, it’s critical that you exercise the discipline to pay the debt before you have to pay interest on it. Merchants typically sell these contracts to a finance company of some kind, and the finance company is counting on you to not have the money at the end of the no interest period. Don’t buy on one of these deals thinking that you’ll save the money—if you don’t have the cash, don’t buy until you do. But don’t part with your cash until you have to.

Also, be sure to carefully read and understand any buy now, pay later contract so you know exactly what you are obligating yourself to. Don’t count on a salesperson’s explanation—read the contract and question anything that doesn’t make sense.

Jackie