“Will that be cash, credit or a point-of-sale loan?”
With the nation’s largest shopping period weeks away, It Takes Two with Amy and JJ take a dive into a new trend that has some consumers scratching their heads.
Loans (for select products) applied for and given in the blink of an eye at the check stand.
Imagine that you are out on Black Friday and you have given yourself a budget of $1,000 for a new big screen TV. You find a great TV, but it’s $200 above your budget. If it is one of the qualifying items at Walmart, you might be able to get a point-of-sale loan where you choose 3, 6 or 12 months as your payment plan and walk out the door.
Sort of like a reverse layaway.
Hilary Hendershott is a certified financial planner and weighs in on the pros and cons of having this new style of payment available at the nation’s largest brick and mortar retailer.
Here are the pros:
Little hassle
Quick decision
You walk out with the product
Here are the cons:
Only eligible on select products (excludes groceries, gift cards, rifles, etc)
High APR and/or late payment fees
Promotes reckless spending in a culture already known for spending beyond their means.
Will you be hitting the cash register with a loan program in mind? Maxed out credit cards are not stopping you from nabbing the latest Xbox or Apple watch…this year at least!
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(Amy Iler & JJ Gordon are talk-show hosts at 790 AM KFGO in Fargo-Moorhead. “It Takes 2 with Amy & JJ” can be heard weekdays 11am-2pm. Check out the show page on
FACEBOOK.
Follow Amy on Twitter
@AmyKFGO
. Follow JJ on Twitter
@JJGodon701
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