Many an unsuspecting consumer has fallen prey to the 0% interest trap. There are a number of scriptures that warn us to be alert and avoid becoming entangled by this temptation.
These warnings include:
1. Count the cost of the offer. (Luke 14:28-30)
2. Check all the facts. (Proverbs 18:13)
3. What glitters at first may have a poisonous bite in the end. (Proverbs 23:31-32)
4. Your purchase may bring immediate pleasure, but pain in the future. (Hebrews 11:25)
Consider the following example. You are going to make a large purchase with a price tag of $1000. You are offered 0% for the first 12 months. Buy now and pay later.
You really want the item so you fail to read the fine print. If you do not pay off the entire amount in the 12 months, you will be charged interest at a rate over 20% .
But there is more. What type of 0% interest contract have you agreed to? If it is an interest waived arrangement, the high interest rate begins when the 12 months is up and is applied to the unpaid balance at that time. The interest charges will continue until the balance is paid off.
However, if you agreed to an interest deferred contract, you are in for a real shock. Your balance will have interest added to it as of the time you made the initial purchase. Your 0% has become full interest and will continue to be charged until the balance is paid off.
This trap is subtle and costly. By presuming on the future you have ignored God’s warning. (James 4:13—15) Statistics show that most people fail to pay off the amount by the due date, thereby incurring the excessive interest charges