For consumers looking for ways to finance their holiday shopping, deferred-interest-rate deals on credit cards might be very alluring.
Yet if you don't understand the fine print, you could be in for an unwelcome gift long after the holidays are over.
"If you don't pay the balance in full by the end of the promotional period, you'll be on the hook for interest from the very first day you put a purchase on the card," said Brian Karimzad, a researcher at CompareCards.com.
Consumers generally appear to misunderstand how deferred-interest deals work, according to a recent survey done by CompareCards.com. While 56 percent of respondents knew the definition of deferred interest, just 28 percent were able to correctly identify how these deals actually are applied to their balance. (Click on chart below to enlarge.)