Trick or Treat? When “Interest Free” Comes with a Catch 🎃

When I think back to Halloween growing up, I don’t remember expensive costumes. Most of us put together something using whatever we could find at home. Some store-bought costumes were plastic, with very little to them, but we had a great time.

My usual costume involved a long skirt, a shirt, a bandana around my head, and plenty of costume jewelry with big hoop earrings and some make-up. Hopefully you guessed it—a fortune teller without the crystal ball!  And just like that, I was ready to go knocking on doors.

Most of the time we said, “trick or treat” and received so many treats that our bags became heavy but every so often, out came a trick.  I remember my sisters and I knocked on one door and out came a monster who literally chased us down the hallway. We ran so fast screaming with terror. Our hearts were pounding and as we ran down the stairs, we could barely catch our breath. Afterward, we couldn’t stop talking about how scary it was. And somehow, after all that, we wanted to go back and knock again.

Those were the kinds of tricks we could laugh about afterward and still remember years later.

As adults, we still encounter things that jump out at us—especially when it comes to purchases. The offer sounds wonderful, payments seem manageable, and we’re excited about what we’re getting. We quickly sign on the dotted line and just that fast we get more than we anticipated.

I usually don’t get wrapped up in the salesperson’s pitch; I let them do their thing.  I learned that spending time with a salesperson doesn’t obligate me to buy anything.  Especially since they won’t be around six months from now when you’re trying to make those payments. 

However, I will say I did fall into a potential trap when buying my furniture. The salesperson explained that the purchase would be interest free if paid within the promotional period, with the length of that period depending on how much I spent.

“Interest free” certainly gets your attention. But the words “if paid within” deserve just as much of it.

Here’s what happened to me: Spending, for example, $2,000 meant 12 months interest free; $3,000 meant 18 months; and $4,000 meant 24 months.  Of course, I’m thinking I might as well buy the living room furniture as well and go for the 24-month option.  By then I would have possibly received a bonus from my job, some other bills would have been paid off so I could pay more to this account or maybe I might get an IRS refund that I can put towards the account. 

By the time I picked out my furniture, warranty, and delivery it was well over $4,000 but I said it’s ok I will make my payments and have my beautiful comfy home. 

To help ensure I met the deadline, I divided the total amount into 23 payments. That gave me a goal of paying it off a month before the 24-month promotional period ended.

Why was that deadline so important? If I didn’t pay the promotional balance in full by then, all the interest that had been accumulating during that period would be added to my bill. Even a small remaining balance could trigger a much larger charge.

I would then have interest charges going forward, too. What started as a way to create my beautiful, comfy home could become a hefty financial load.

I did stick to the plan for the most part, but when I needed a little extra cash, I paid the minimum amount due and the extra money I would have paid I used it towards what was urgent for that month. But I would have to make up for it before the deadline.  It became a seesaw, and every smaller payment meant I had to catch up later.

After all the payments were made and the calculations were no longer needed, I had quality furniture and a nice, relaxing ambience to come home to. 

Next time, we’ll explore how to refresh our homes without starting from scratch—or spending a fortune.

What’s one Halloween tradition you love that costs little or nothing? Or what was your go-to costume—homemade or store-bought?