What is a deferred payment?

When purchasing computers and other more expensive consumer goods, you will have the option to use deferred payment. You buy it now and the payment is deferred for, for example, one year. However, a deferred payment is simply a loan that you must repay within the specified period. If you don’t do this, they will charge high loan interest. A deferred payment is less innocent than it seems. It is, as it were, a debt that you receive in your name. The loans are taken out via retail outlets with credit card companies such as Comfort Card and Primeline. You do not have to pay interest and repayments on the loan for the agreed period, but after the period has expired you must pay it in one go. If you do not do this, you will pay high loan interest from that moment on. These are usually interest rates that can go up to 18 percent. If you pay the debt amount at the agreed time, you will not pay any interest.

Why choose a deferred payment?

A deferred payment ensures that consumers can make purchases that they currently do not have the money for. A deferred payment can also earn you savings interest, because you can leave the amount in the savings account for an extra long time, but this advantage is minimal. An amount of 500 only yields 15 after one year (assuming 3 percent savings interest). The danger of postponing payment is that the money will not be there after one year. This is precisely the reason why companies such as Primeline and Comfort Card participate in this. First, they get a new customer who needs credit, and if they can’t pay the money at once, they can catch a high interest rate. Consumers also usually receive a free credit card that invites them to borrow.

Deferred payment and buying a house

A deferred payment is also registered with the BKR in Tiel. When applying for a mortgage, the lender will require that you first repay the loan resulting from the deferred payment. It is even possible that you will have payment problems with the loan in question after it has become interest-bearing. As a result, you may receive a negative BKR registration and it will no longer be possible to apply for a mortgage.

Other disadvantages of deferred payment

To obtain a deferral, you must complete a lot of paperwork and pay an administration fee to obtain the deferred payment. The amount of the administration costs often depends on the purchase price of the product you purchase. It will vary approximately from 30 to 70. In addition to deferred payment, in many cases you will also receive a credit card. This seems like a nice extra, but using it can be very expensive. A credit card gives you the opportunity to always spend money, even if you do not have the money. This is the most expensive way of borrowing and large debts can gradually arise.