Chicago Bankruptcy Attorney Rob Semrad talks about the trap of rent to own
It seemed like a good idea at the time - we were broke, needed a way to wash our laundry and thought we were too cool to be seen at the Laundromat. When we saw that the center down the street was giving away washing machines for $12 a week, we thought we'd found a bargain. And while we were at it, why not get a bigger TV for just $10 a week? So we did. If we would have paid more attention, we would have realized that making payments on these things for 24 months - the length of the agreement - was a total rip-off.
I usually don't advocate using credit cards because of the interest, but in this situation, we probably would have been better off using plastic. Most cards have an annual interest rate of 30% at worst. We were paying over 300%! Rent-a-centers take advantage of people living paycheck to paycheck. While an upfront payment for furniture or appliances might be out of the question, little payments of $10 here and $20 there seem affordable - but they're not worth the outrageous cost. You'd be better off saving a little bit every week and then buying a new appliance outright. You'll spend less and own it sooner.
If saving a few extra bucks a week seems impossible, maybe it's time to reorganize your finances. Living with debt encourages us to live beyond our means while forcing us to live paycheck to paycheck. Why not break free? If you just can't seem to get ahead financially, bankruptcy can give you the fresh start you need. Wondering if it could work for you? Talk with one of our professional bankruptcy attorneys in Atlanta or Chicago for free when you sign up for a one-on-one personal debt analysis. When you eliminate debt, you can spend what you need to spend and save what you need to save - that's freedom.
Unless you enjoy paying double, triple or more times the amount you'd pay at the store, take my advice and avoid rental centers at all costs. About six months into our payments, we angrily realized we'd put in about what it would cost to get a basic model washer and TV new from the store. But there was nothing we could do to get out of our contract. Eventually, we stopped making payments and the center took back their things. We had paid almost $400 for the washer and $300 for the TV just for the privilege of renting them. If we had wanted to own them, we would have ultimately had to shell out $1,150 for the washer and $960 for the TV - more than three times the cost of similar units at Sears.
I usually don't advocate using credit cards because of the interest, but in this situation, we probably would have been better off using plastic. Most cards have an annual interest rate of 30% at worst. We were paying over 300%! Rent-a-centers take advantage of people living paycheck to paycheck. While an upfront payment for furniture or appliances might be out of the question, little payments of $10 here and $20 there seem affordable - but they're not worth the outrageous cost. You'd be better off saving a little bit every week and then buying a new appliance outright. You'll spend less and own it sooner.
If saving a few extra bucks a week seems impossible, maybe it's time to reorganize your finances. Living with debt encourages us to live beyond our means while forcing us to live paycheck to paycheck. Why not break free? If you just can't seem to get ahead financially, bankruptcy can give you the fresh start you need. Wondering if it could work for you? Talk with one of our professional bankruptcy attorneys in Atlanta or Chicago for free when you sign up for a one-on-one personal debt analysis. When you eliminate debt, you can spend what you need to spend and save what you need to save - that's freedom.
