As Christmas bells start ringing it ushers the season of buying and shopping. Often consumers are flooded with images of various items they can buy now and pay for later.
Companies often use attractive packages to make these deals appear irresistible and snare the unsuspecting customer. For example, one furniture company offers a ready discount card for hire purchase customers that rewards them with discounts up to 15% when shown at selected companies.
I wonder though if the cost of hire purchase is simply too high? Consumers often pay for the item several times over what they would have paid in cash. The interest payments vary among companies but there is a very real risk of overpaying for the item.
Consider too that after making a number of payments you are faced with an unexpected expense and can end up losing the item and all the previous payments.
So is it worth it to buy now and pay later? You be the judge! Let me hear from you! Do you think Hire Purchase agreements are beneficial for consumers?
- Teri Ann Renee Paisley (Gleaner on-line writer)