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Using the interest-free credit option

While normally we would not recommend using interest-free credit options for significant purchases such as couches and other expensive furniture, there are some occasions when it can be very beneficial. If you have the money set aside to pay for your expensive furniture, or whatever else it may be, maybe you could take on the interest-free credit option and place the money you had saved into a bank account for the future. Not only will this offer a significant fall back in the short to medium term in the event of unforeseen circumstances, but it should begin to earn interest as UK base rates start to move higher.

Many interest-free credit options require a small deposit at the beginning of the agreement and the balance paid off at the end. Whether you pay back the full amount over six months or one year, or possibly longer, the potential savings and financial peace of mind (as long as you are sensible) can be very worthwhile. However, if you do have the money to hand you can always try and barter with the sales rep and arrange a significant discount for cash. You will be surprised how many companies are willing to take your cash in their hand, and offer a discount, rather than the interest-free credit option. Cash is still king!

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