If your old, ratty sofa is full of holes and falling apart, it’s probably time to buy a new one! However, purchasing a new sofa or loveseat may seem like a monumental task when money is tight. Luckily, there are options available to you even if you can’t pull together the necessary cash to buy a new sofa.
Consider buying your new sofa on credit. Buying on credit, or using financing, means that you pay very little or in some cases none of the purchase price up front. Instead, the retailer you are purchasing the sofa from extends you credit, meaning that you sign a contract or similar agreement to pay back the amount you owe over a period of time, ranging from a few months to a few years in most cases. To make this worthwhile for the retailer, it charges you interest or a financing charge. The rate of interest, which is generally expressed as a percentage, is the percentage of the purchase price that the store adds to the actual purchase price in exchange for the convenience of spreading out the payments over a period of time. Essentially, you are borrowing money from the retailer to pay for the sofa and then paying that money back with interest over the length of the financing agreement.
If you want to buy a new couch on credit but are worried because you have a less-than stellar credit history, you can still try for a regular store financing offer, as they are often less strict about credit histories than major credit cards. Another popular option is to buy your new sofa or loveseat using the buy now, pay later option offered by many catalogues in the UK.
Catalogue retailers such as Very, Littlewoods and K&Co. offer a wide variety of sofa options on the online versions of their catalogues. Littlewoods, for example, lists over 200 models of sofa on its online catalog site, ranging in price from under £300 to more than £2000. You can search each different catalog site for the type of sofa you want in the upholstery you prefer, then take advantage of the catalog’s buy now, pay later option when checking out.
Buy now, pay later offers vary from catalogue to catalogue, but generally offer at least one month interest free. Many catalogues offer as much as 12 months interest free. Most programs have a minimum purchase requirement, which can be as low as £50. Given the price associated with a large piece of furniture like a sofa, reaching the minimum shouldn’t be a problem.
If you do not pay back the entire purchase price of the item during the interest-free period, be aware that the interest rates that catalogs charge for financing items such as sofas are fairly high — more than 30% in some cases. Missing payments will harm your credit score, so before you agree to a buy now, pay later program make sure that you are not purchasing more than you can afford.