Thu, 8 November 2007
-Comments, Questions and Answers
-Making Personal Recommendations at work
-The real deal on Consumer Financing
Welcome back to the MBA Working Girl Podcast-Where Business Theory and the Real World Collide! I'm your still-congested host, Laura Adams.
A nasty cold has kept me away too long - but I'm feeling soooo much better!
MBA Essential Tip:
Are consumer sales financing offers demonic or angelic? It's all in the eyes of the beholder. The real answer depends on whether you're financially responsible. Can you pay your bills on time consistently? If you answer yes, you can use "Same as Cash" financing deals to delay payment for products like appliances, furniture, or floor covering.
If you pay the total amount off by the end of the term - either in smaller regular payments or in a lump sum - you eliminate ALL interest and fees. You get to take delivery of products for 6 months, 12 months, or sometimes 24 months while your money can be working for you earning interest.
But if you don't pay the TOTAL amount off by the end of the term, you will be subject to a high interest rate that began accruing on the date of purchase. This is the worst form of debt - high interest owed on consumer purchases that started depreciating the moment you took delivery of them.
Here's a typical deal-make sure you understand it before signing on the dotted line for consumer financing:
Six Months Same As Cash, Payment Deferred
Subject to credit approval. Finance charges accrue from the date of the sale unless the Same As Cash plan balance is paid in full prior to the Same As Cash expiration date. Regular credit terms apply after the Same As Cash period. Terms subject to change without notice. Annual Percentage Rate: 21.90%
In this show I'll share great listener emails with you.
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Thanks for listening-
Do Good Work, Laura
Direct download: MBA_WGP_33_-_Great_Listener_Email.mp3
Category: podcasts -- posted at: 8:50 PM