Today, virtually every item on the web can be purchased on installment. You can buy everything from bicycles and furniture to clothes and groceries on payment from a large number of Danish web shops. In most cases, this is an interest-free installment, and this may seem like a good idea, since you do not have to pay interest. But is it really a free installment or there are hidden fees?
No interest but fees and extra costs
There are many web shops that lure with interest-free installment. In many cases, this is what makes some people choose to make a given purchase. It is quite true that there are no interest on the installments you pay each month, but you should be aware that both fees and extra costs will be charged for each of your installments.
The vast majority of those who choose to accept such a payment arrangement have a desire to spread their payment over a certain period of time. However, a large part of them is also of the conviction that it will not cost them anything as they do not have to pay interest. The fact is, however, that this is not the case, as there are only some other expenses.
What this means is that you will not only have to pay the set cash price for the product (s) you are purchasing. That’s exactly what many people believe, but the reality is another. The extra expenses may include: things like payment service, administration fee, creation and setup costs, and non-payment fees. If you want to see more loans where you can get the first 30 days interest free, you can see more right here on our partner’s page Apollofinans.dk. Here are several interest-free loans.
Therefore, interest-free installment is not a good idea
As also stated above, on paper it may seem like a good idea that you choose to buy a product on installment if you can avoid paying interest. Today it is something that you can afford at a lot of webshops, and there are only more and more coming. This applies not only to Danish, but also to several foreign sites.
If you would like to pay off one or more items that you buy from a webshop, it is important that you first spend some time reading the agreement you are signing. In this agreement, you can – probably – find a number of expenses that you will be charged if you choose to enter into a payment arrangement. It is rarely through the webshop itself, but rather through a third party.
Many loan companies are included as financing partners
In many cases, a loan company is a financing partner. This means that you are actually issued interest-free loans on the amount you are trading for. It doesn’t cost you any interest, but you typically have to pay a number of fees. One of the most commonly used fees is the setup fee as well as the administrative costs of sending e.g. invoice.
The above does not mean that you may not avail of interest-free installment. It’s just a warning that it’s only interest-free – it’s not free!