Deal? Or No Deal?

You really want a new high-efficiency front-loading washing machine, but the $1,200 price tag is hard to swallow. Don't worry, says the salesman, the store offers interest-free financing for 18 months. Deal?

NO DEAL! Paying the minimum every month (usually 4 percent of the balance) will never clear your debt within the interest-free window. And when that promotional period is up, you're typically socked with interest that was actually accruing during those 18 months, at a rate as high as 20 percent.

If that happens, you could end up paying more than $755 in interest before you've paid off the machine. You might be tempted to game the system - to put $1,200 in a high-yield savings account for 17 months and 29 days, pay off the balance and pocket the interest.

But that'd net you only about $75. Besides, no matter how you play it, borrowing from a finance company can really hurt your credit score.

Find out more on increasing interest rates

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