0% APR or pay in full now?

[IamwhoIsayIam]

I'm buying a new sofa - approx £1800. I can get 4 years 0% APR and keep the lump sum in the bank and make the repayments out of my monthly budget. Or pay in full now and have no debt.

Instinctively I would pay now - but given it is 0% am I better off keeping hold of my cash?

For other info paying the sofa outright would still leave a good amount of cash savings.

I'm just interested on a different take - there are some smart with money people on this forum :-)

I always take the 0% interest. I'll keep my money in savings for an emergency.

I used to often take advantage of 0% interest but only over 12 months. It is against my religion to pay interest charges!

Things I've bought on interest free include an expensive exercise bike, rowing machine, replaced my front door.

I think I would pay now for a sofa though, or pay it over 12 months, 48 months is a long time to be paying for a sofa (which could be knackered by the time you've finished paying for it).

Get the interest free loan, put the money in premium bonds. There if you need it, if you win anything while it’s in there bonus…

It makes loads of sense to take the credit but I wouldn't, I like to know things are paid for and you can't get any interest on the savings currently anyway.

Whether you are better off in £££ depends on whether you keep the money in an interest paying account and obviously you can work that out yourself.

Clearly you are in a better position in case you need all of your money suddenly for an emergency

It seems a no brainer to take the interest free

I always take the 0% offers with stuff like furniture but only if I can still afford to pay it if my circumstances change - for example, if I had to claim benefits etc.