Interest free deals downsized

Retailers such as Harvey Norman are scaling back their interest free deals on purchases as consumers continue to scale back on their debt and the retailers seek stable funding sources.

GE Money partners with 12,000 retailers to provide interest free finance for shoppers and says it has reduced the number and length of its interest free deal. “Volume are definitely down,” said Skander Malcolm, managing director of retail at GE Money.

Harvey Norman executive chairman Gerry Harvey said the company had reduced the terms of its latest interest free offers. “I’d love to do business with no interest free but that’s not possible.”

Woolworths chief executive Michael Luscombe says his company only offers a very limited interest free deal through its’ Dick Smith chain. “They are very expensive quite frankly, either the customer pays a lot more up front or someone else subsidises it.”

Source: The Age