Ontario woman who bought $700 computer still paying it off seven years later
An Ontario woman who bought a $700 computer through a "buy now and pay later" loan is still chipping away at her debt seven years later.
Offers to "buy now and pay later" sound like a great idea and often allow you to enjoy something right away before you have to pay for it.
You can often delay payments for one to two years and financing options come in the form of a promotional offer, interest rate deferral or a revolving credit plan.
But they also come with a lot of fine print and if you miss the promotional period deadline to pay back a loan, even by a day, you could have to pay mountains of interest.
"I needed a computer for school and I didn't have the money to buy one," said Allison of Brampton, who asked us not to use her full name.
Allison said in 2014 she was attending school and needed a laptop and was told if she couldn’t pay for the computer she could finance it.
"I wasn't able to pay the full cost of the computer at the time and I was made aware that there were financing options," said Allison.
Allison said seven years ago the laptop had a purchase price of $723. She paid $23 per month for 90 months for a total of more than $2,000.
She was shocked to find out this year she still owed $397 for the computer, because she didn’t realize she signed up for a revolving loan and had mainly been paying interest charges.
"So it was quite a surprising predicament for me. I thought how is that even possible? I've paid for this computer four times already," said Allison.
CTV News Toronto reached out to the financing company and a spokesperson said "Customers that use this revolving credit take advantage of our deferred interest promotions. Most pay off their balance prior to the promotional expiration and thus avoid paying interest."
Pattie Lovett-Reid CTV News' Chief Financial Commentator said people have to be careful signing up for some deferred loans because if they miss the promotional deadline to pay back funds they could be “paying interest, on top of interest, on top of interest."
There are many different financing options including no interest charges for 12 months to two years, but if you don't pay the amount in full by the deadline you could have to pay up to 30 per cent interest over the entire loan period.
"It's often zero down no payments for a year, but a year from now you just don't know what your financial situation will be and some could find themselves in an even worse off position," said Lovett-Reid.
Before agreeing to any deferred payment plan make sure you have a good understanding of the terms and conditions. Allison didn’t, which is why she wanted to share her story to warn others.
If you sign up for a deferred payment plan make sure you write down the date when the promotional offer ends so you can pay the money back before it expires.
Always try to pay more than the minimum payment each month or the item you bought could cost you triple it's original selling price.
CTVNews.ca Top Stories
Work stoppage possible as WestJet issues lockout notice to maintenance engineers' union
A lockout notice issued by WestJet to a union representing aircraft maintenance engineers could result in a work stoppage next week.
'I just can't believe that it took so long': Body found in wreckage 3 months after deadly fire
A man accused of arson in a January Old Strathcona apartment fire is expected to be charged with manslaughter after a body was discovered in the burned building late last month.
No proof man lied to brother about number of kittens born in litter, B.C. tribunal rules
A man was denied a $5,000 payout from his brother after a B.C. tribunal dismissed his claim disputing how many kittens were born in a litter.
Bodies recovered in Mexico likely 2 Australians, 1 American who went missing: officials
Three bodies recovered in an area of Baja California are likely to be those of the two Australians and an American who went missing last weekend during a camping and surfing trip, the state prosecutor’s office said Saturday.
BREAKING London Drugs begins 'gradual reopening' on 7th day after cyberattack
Almost a week after all London Drugs stores across Western Canada abruptly closed amid a cyberattack, they began a "gradual reopening" on Saturday.
Quebec police hand out hundreds of tickets to Hells Angels and other bikers before 'first run' meeting
Quebec provincial police handed out hundreds of fines to Hells Angels members and other supporting motorcycle clubs who met for their 'first run' in a small town near Sherbrooke, Que.
Auston Matthews skates ahead of Game 7, status unclear with season on the line
Auston Matthews was back on the ice with his teammates Saturday.
Russia puts Ukrainian President Zelenskyy on its wanted list
Russia has put Ukrainian President Volodymyr Zelenskyy on its wanted list, Russian state media reported Saturday, citing the interior ministry’s database.
Snakes almost on a plane: U.S. TSA discovers a bag with small snakes in passenger's pants
According to an X post by the Transportation Security Administration, officers at the Miami International Airport found the small bag of snakes hidden in a passenger's trousers on April 26 at a checkpoint.