You don't have a choice but to pay it off in time -- each monthly payment is added to your monthly cellular bill. Payments each month are required. It's not just left up to you to forget about it then have a giant balloon payment to deal with in 36 months.
I understand where you are coming from. However, the problem is that when you agree to the 0% financing, you are beholden to the financing company for 36 months (in this example), unless you pay the device off early. And this will probably not be the only thing financed during that window of time, in a many cases. A lot can happen in that time, and if for some reason your financial situation goes south and you cannot make a payment, and you end up getting a 30-day late hit on your credit report (or worse), your credit will take a massive hit that will last for several years. Outside of my home loan, which will be paid off in another two years, I don't finance anything. I realize not everyone can do what I do, but a lot of people get trapped into these 0% financing offers with the mindset of "well, it's 0% interest and I can afford these small monthly payments" and the next thing they know, they're in more debt than they can handle.
You're showing your age, nobody NEEDs an iPhone let alone a new one, however it has nothing to do with that. It has everything to do with people getting loans/financing regardless of credit score. While credit scores and the need for them are debatable, people will surely ruin their financial lives even more if they're allowed to go unchecked and consume. Financial discipline is at all time lows, especially in the US, and people are literally filing bankruptcy for things like auto loans which are at all time highs. Instead of education, we're just extending terms leading to a false sense of security.
Did you notice your post I replied to? It was (from you) "And we wonder why so many people are financially upside down (in the US anyways).".
Right, but I don't know anyone who can comfortably pay cash for things like an iPad who would finance one, even at 0%, and have their credit get hit with an inquiry and be locked into a contract for up to 36 months on top of it. I'm not saying these people aren't out there, but I've never met one.
BestBuy is offering their members right now 36 month zero percent financing, even on items that are marked down on sale. I just have a hard time seeing what is bad about taking advantage of someone else's money for 3 years for free, especially in these times (in the US).
Forgot to add the carrier monthly fees that they are trying to lock you in. Sure can cancel but will demand payment in full which will scare or force people to stay.
That's a terrible idea. That's how the housing market collapsed in 2007/2008. The banks loaned money to anyone, even people who couldn't afford the loans.
Plus time value of money. I just financed a 17 Pro which I could have paid in full. It’s a no brainer at 0% interest.
