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One of the methods that many people make pricey purchases is with the aid of rent-to-own. The idea behind rent-to-own is relatively uncomplicated: If you wish to make a huge ticket purchase, such as furniture or jewelry, you make a plan to pay in small amounts over a set time period. You either rent the item for an ideal quantity of time, and return it. Or, if you want to keep it, you pay with time till you own the product.
What this plan amounts too, though, is a loan. According to CNN Money, the number of rent-to-own consumers has actually risen to 4.2 million in 2012, from 2.8 million in 2007. The financial crisis and economic crisis have added to the growing number of people choosing rent-to-own rather of trying to save up for costly items, or putting them on a charge card.
It appears extremely practical and budget friendly, since it’s possible to pay a small regular quantity, such as $15 or $25, depending on the product. You’re enabled to bring back the product at any time you desire, and the rent-to-own store will tell you how many payments it requires to have the product outright.
Unfortunately, this is not really constantly the very best plan for the consumer. CNN Money reports that lots of customers end up paying double the price of the product by the time the payments are finished and the product is had.
Rental companies mention that these high rates enable them to offset taken items and damaged products that are returned to them. Customers, however, seldom pay attention to the overall cost. With such an affordable regular rate, it’s tough to focus on the total amount. But if you don’t you might wind up paying excessive.