90 Days Same as Cash

Just how many of us understand the term and all it encompasses and how many take it at face value – “but they say its……”   As holiday season approaches it might a good time for us to review how we choose to pay for those precious holiday gifts that end up under the tree.

The majority of us are efficient readers and we comprehend quite well but usually that only applies to the things that interest us.  Pages and pages of disclosures do not qualify as interesting reading.  Therein the problem lies.

The cashier (or Sales Transaction Associate – as some “big box stores” call them) - is neither your friend nor family member looking out for your best interests.  They have targets to meet and you are prey for the hunters. Simple!  They will smile ever so sweetly – treat you like you are the only customer in the world and it’s just that feeling that your ego has been craving for.  You and only you know what you can afford to buy and what you need to take a pass on.  Sometimes the thought of taking the item home with you that day becomes all too irresistible - you want to please your family so any cautionary note that someone might give you at the point only falls on deaf ears.

While “Same as cash” may seem appealing option to you, taking it means going forward on a lot of assumptions.  On the date of purchase you do not have available to you the required amount, so they give you terms so that they do not lose the sale.  An account is opened for you to make regular payments.  The understanding here is that you will make full payments within the given time – 90 days.  Some may give you six to twelve months – depending on the size of your purchase of course.

You will then receive a statement in the mail stating what the minimum payment required by the next billing cycle is.  And this is where most of us starting going downhill on this supposedly attractive offer.  If you add up the minimum payment over the time you need to pay you will definitely not have paid it off in 90 days.  The ugly side of the transaction is that if you do not pay off the ENTIRE amount due within the 90 days your interest is backdated to the date of purchase and added to the balance due.