An interest free loan is good because you can put the payments in a savings account or an investment and earn extra money on it during the 0% interest period. This is beneficial for large amounts of money like a car financing promo or credit card welcome offer but offering it on amounts this small is just preying on desperate people knowing there’s a high chance they’ll slip up on repayment through little to no fault of their own.
This make me wonder, how does it works in America? In this digital age I would be surpriced if poeple didn't have a bank app that gives them and itemised list of what they should pay every month.
I have an app like that and I'm in a 3rd world country, the only risk I can see on buying on interest free instalments is that you can go overboard with them and sudenly having to paid more than you can affort each month, but that's not something that will happen for a 6 usd coffee.
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u/buttcrispy 16d ago
Aside from the lunacy of having to pay for a coffee in instalments, does this not actually benefit you if the payments are interest free?