It seems like a great offer when you can buy something today and have to pay for it as much as three months later. However wait and minutes to consider a few things. Usually and what this offer promises you is a period of 90 days where no interest is charged on the purchase that you make. You can just paying what you’d pay today in cash after 90 days. However, what the stores are counting on is the fact that you will not be able to make the payment after 90 days as well. If you don’t then you will be charged and interest for the period that you extend the payment as well as the original 90 days. Some people think that if they extend the payment for another three months they will only have to pay interest on the additional three months. That is not what happens. You will be charged interest on the first 90 days that was supposed to be interest-free as well as. If you do not pay in 90 days the interest is backdated to the date of purchase and added to the balance.
The scenario in which 90 days same as cash offer works is if you are disciplined enough to put away equal instalments of the purchase for the first three months and then pay the balance in full when 90 days are over. This way you will get the grace period is to come up with the money of your purchase and avoiding paying any interest all together. You only get the interest-free 90 days if you pay the balance in full after a 90 day period. Otherwise this 90 day period will be included in the duration that the interest is charged for.
Another option is to simply save for the purchase that you have in mind and buy it after three months.