How does Dave feel about “90-days-same-as-cash” deals?
When you have saved up enough to pay cash for an item, then buy it. Period. Finance plans like “90-days-same-as-cash” or “one year, no interest” are designed to get you to buy more than you would normally buy if you were paying right then. Eighty-eight percent of the 90-days-same-as-cash contracts convert to payments that are usually at 24% APR with the Rule of 78s prepayment penalty. You don’t need or deserve it unless you have saved cash to pay for it. Remember, you can also negotiate with cash and get a far better deal. When this happens, 90 days is not the same as cash, now is it?
