04.Interest-free vs credit cards
Rules of thumb:
- Small purchase amounts of $1000 and less and short payment periods such as two years and less: a credit card normally works out better, obviously the lower the interest rate the less you pay.
- Large purchases such as $3000 over longer periods such as three years and more: interest-free can work out better than a credit card.
- Interest-free and no-interest-ever both have high fees, but no-interest-ever may be less risky as there is no astronomical interest rate if you don't pay it off in full during the period.
UPDATED TABLE HERE ( $1000 for 36 weeks, medium-interest and high-interest credit card, interest free and FIDO - no interest ever)