Be very wary of deferred interest plans.

• Position: Holiday Debt - Brief article

With the average consumer expected to spend roughly $834 this holiday season and credit card debt projected to rise by a net $60,000,000 by the end of the year, financing options are likely to be in high demand. With that in mind, CardHub has released Its 2015 Deferred Interest Report in order to shed some light on the dark side of holiday financing, which can end up costing consumers over 27 times more than they expected to pay.

Deferred interest plans typically are marketed as offering zero percent introductory terms, but they come with a catch that distinguishes them from normal zero percent credit cards. If you leave an unpaid balance of even one dollar at the end of the introductory period or you miss a single payment, Interest will apply retroactively to your entire original purchase amount. Thus, what you...