Retailers count on the fact that many people won't be able to pay in full by the deadline. Many consumers would be better off taking out an installment loan. That way, it's easier to budget and the interest rates will probably be lower. There's another downside to deferred plans, Williams says. Psychologically, that makes it tougher to pay for.
Some retailers have plans that reward customers for prepayments.
Heilig-Meyers, a large furniture retailer based in Richmond, Va., offers installment loans that require regular monthly payments with interest. But if customers completely pay off the loan early, usually in 90 days, they can get a rebate on the interest. Wilson Blvd., Arlington, Va., 22229. Include a daytime phone number.