you have the terms of interest free deals provided by the majors completely wrong. Companies such as GE DO NOT lump the entire amount of interest balance the day the free term ends. You are just talking junk. GE's interest in calculated into the price of the goods purchased from the retailer, hence the reason it is hard to negotiate a decent price for such goods. This sum is paid to GE the day you buy those good by the retailer, and the retailer takes the remaining cut above cost price. Once the term resets, and you are required to make repayments, you only pay interest on the remaining money owed. Pretty simple mate. If you are unsure on what I have just written, read the terms of say Harvey Normans deals, and also pull the info from GE (It is available for reading in it's entirety, including the rates based on 6 month, 12, 18, 24, 36 etc...).
That said, I would never enter such an agreement, as I would find that over say a 36 month period, I am paying 17.5% too much upfront for the goods in the first place (this is the % paid to GE initially by the retailer for providing you the loan), not to mention the monthly $4-5 dollar fee, and the initial establishment fee. EG, and RRP $4000 TV, I could get with cash at a minimum of say $680 off just for the lump sum paid to GE, minus the 7-10% earned by HV, so say $400 off, leaving me paying only $2920 for the TV upfront.
