Buy Now, Pay Later

ANCHOR LEAD IN:
YOU'VE SEEN THE ENTICING ADS FOR THOSE BIG-TICKET ITEMS…
"BUY NOW-PAY NO INTEREST FOR A YEAR,' OR "MAKE NO PAYMENTS' FOR SIX
MONTHS." THE DEALS CAN BE REAL - BUT THERE ARE SOME NEW TRAPS YOU MIGHT NOT
KNOW ABOUT. IN TODAY'S HEADS UP_________HAS SOME TIPS FOR THOSE TEMPTED TO BUY
NOW, PAY LATER.

TRACK ONE Length: 04
SHELLEY UHLIG (YOO-lig) IS PRETTY HAPPY ABOUT HER NEW FURNITURE PURCHASE.

SOT
KEY @:05 Shelley Uhlig, Consumer
"We definitely like the color, we like the style."

TRACK TWO Length: 05
SHE'S EVEN MORE PLEASED WITH THE DEAL SHE MADE. SHE HAS A FULL YEAR TO SPACE HER PAYMENTS -INTEREST FREE.

SOT
NO KEY
"We kind of felt like it was a 'win-win situation.'"

TRACK THREE Length: 09
CONSUMER CREDIT EXPERT GERRI DETWEILER (DET-why-ler) IS THE AUTHOR
OF "THE ULTIMATE CREDIT HANDBOOK." SHE SAYS 'BUY NOW, PAY LATER' DEALS CAN BE GREAT-IF YOU FOLLOW THE RULES.

SOT
KEY @:25 Gerri Detweiler, Author, Ultimate Credit Handbook
"You have to read the fine print, and read it again, because there are a lot of traps."

TRACK FOUR Length: 06
DETWEILER SAYS THE LENGTHY CONTRACTS CAN BE CONFUSING. FIRST, WITH MOST COMPANIES YOU CAN'T JUST USE ANY CREDIT CARD.

SOT
NO KEY
"You actually have to get one of their credit cards in order to be eligible."

TRACK FIVE Length: 06
AND WHILE YOU MAY HAVE A YEAR TO PAY OFF THE PURCHASE, DON'T BANK ON MAKING ONE GIANT PAYMENT AT THE END. THERE MAY BE A MONTHLY MINIMUM.

SOT
KEY @:47 Gerri Detweiler, Author, Ultimate Credit Handbook
"If you miss the minimum payment of a 'buy now, pay later' plan, you'll probably be charged a late fee. You'll be charged interest on the plan usually back to the date you made the purchase, and that interest rate is usually pretty high."

TRACK SIX Length: 10
INCREASINGLY, LENDERS EMPLOY SOMETHING CALLED A "UNIVERSAL DEFAULT CLAUSE," WHICH ALLOWS THEM TO VOID THE DEAL IF YOU'RE LATE WITH ANY CREDIT CARD PAYMENT… NOT JUST THEIRS! NOT ONLY THAT…

SOT
NO KEY
"They may hike your interest rate."

TRACK SEVEN Length: 10
TO PROTECT HERSELF -- SHELLEY IS READING THE FINE PRINT - AND ASKING LOTS OF QUESTIONS. IF SHE MISSES THE PAY-OFF DEADLINE-SHE COULD OWE A WHOPPING 25
PERCENT INTEREST DATING BACK TO THE SALE DATE.

SOT
NO KEY
"I would not want to get stuck with 25% interest! I am hoping I'm getting the deal as advertised."

ANCHOR TAG:
OFTEN, THE FINANCING IS NOT PROVIDED BY THE RETAILER, BUT RATHER BY A SECONDARY FINANCE COMPANY.SOMETIMES A LOAN FROM ONE OF THESE FINANCE COMPANIES CAN NEGATIVELY AFFECT YOUR CREDIT SCORE.

SOURCE INFORMATION
FOR CLIENT-STATION USE ONLY
The information provided below is for client-station use only. It is provided to help you obtain answers to any additional questions you may have and to help you localize a story. This private contact information, including phone numbers, addresses and email addresses, cannot be given to viewers nor posted on your Website. It is for internal station use only. Any exceptions to this will be clearly noted. Thank you.

Gerri Detweiler
President, Ultimate Credit Solutions, Inc.
5317 Fruitville Rd. #122
Sarasota, Fl. 34232
(941)227-4496

Gerri Detweiler has spent the last twenty years helping consumers manage their money and find reliable answers to credit problems.She's authored or co-authored several books, including "The Ultimate Credit Handbook," which was featured as one of "The top five best books of the year" by Money Magazine when it was released. Detweiler is the former Executive Director of the nonprofit consumer education and advocacy group, "Bankcard Holders of America."
She's been quoted in the New York Times, the Wall Street Jounral, the Washington Post, and USA Today. She's served as a guest expert on The Today Show, CNN, Dateline NBC, and the CBS Evening News.

EXTRA BACKGROUND

Source: Gerri Detweiler, Consumer Credit
Expert, Author, "The Ultimate Credit handbook"
Example:
Consumer purchases a $2500 plasma TV, with one year 'interest-free' financing. If he/she is even a day late in paying off the balance, interest will be charged back to day one, typically at around 19.8%. That means you could pay an extra $500 on your $2500 TV. If you draw the payments out even longer on a high interest credit card, you could easily pay double the cost of the TV over time.

Advice for Consumers
* If you find you're unable to pay off the balance within the promotional period, consider transferring the balance to a low-interest credit card so that you don't get hit with the back-dated interest.
* A good option for purchasers may be to have the payments automatically deducted from your banking account, so that you don't miss a payment.Credit card issuers give themselves permission to change their terms, as stated in their contracts. By law, they can do that, as long as they give the cardholder written notice fifteen days in advance.