Stores often entice customers to make big purchases with zero-interest loans. Credit cards tout that they’re zero-interest. There are even zero-interest car loans and zero-interest student loans, although the latter is rare. What’s not to like?
Actually, for the most part, nothing. Zero-interest loans are often as great as they sound. But anything awesome can still turn out to be awful. That may be a sad worldview, but an adorable puppy can still bite you. Flowers can give you allergies. It’s possible to die from laughter. And, yes, a zero-interest loan can sometimes end up costing you more money than you would ever imagine.
That doesn’t mean you shouldn’t jump at the chance to get one. But you should be aware of several things.
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