I am a consumer; I am attracted to the no-down payment offer and most of all the 0% interest rate when I make my payment which might be in a few months up to three years.
For the most part you must be comfortable to make the purchase price payment schedule, which is generally higher than the competition, and you can buy a brand new 50 inch television, a teeth whitening paste, even an automobile overhaul worth thousands of dollars.
But God forbid do not miss a single payment or it is economic purgatory!
The interest, in Costa Rica can be as much as 50%, no matter how many payments have already been made. Interest is usually charged on the entire sum and not only the outstanding balance not to mention those hidden fees. Draconian, but legal.
The concept came from the North, where to sell products, a scheme, a very calculated scheme with a very nice partnership = Retailer + Bank = Money= up to 60% and in some cases 90% more for big-ticket items. All numerically calculates those consumers who can and those who will not meet the payment deadlines.
Cars, vacations, visits to the spa, televisions, medical necessities, etc. can be financed for 0% interest and so much per month. (If you qualify and make the payments not one day late.)
Fees, if any; outlets, retailers or medical people try hard not to say “Who qualifies and if you do qualify; how much per xyz are the payments. With simple addition times the payment schedule will become your total cost of the product or service.
Not a new marketing scheme to attract buyers but fiscally dangerous.
If you can pay the monthly quota or bi-monthly quota and you really want the face lift or 42” television; fine. Make the deal!
But as Q says, if there is even a question of not being able to pay the monthly quota …do not do it or you can be charged 50% or more just in interest alone plus late fees