Know Who’s Behind Your Money – PART 4

This post is part 4 of 8 in our groundbreaking series on how do you tell the bargains from the dissipation? Here’s look at some offers that often don’t pay off, plus smart ways to save your money.

Know Who’s Behind Your Money – PART 4

What we talking about is someone who you give your money by your will. There is groups of people are after your money, you know all about it and you like to hold on as much of it as you can. Let us start by list them out one by one.

No. 4 – RENT-TO-OWN Merchandise

The $7 billion rent-to-own industry offers Electronics items like Computer, TV, Fridge. Appliances, consumer goods, jewelry and furniture for “low, easy payments” with no money down. But many of the three million people who shop in shop stores like Rent-A-Center end up buying over time-and paying exorbitant rates. A37-inch SONY Flat-screen TV that retails for $1,500 can be rented for about $38 a week. After 142 weeks, you own a TV but are out of $5,300. That’s an interest rate of 142 present. Rent-A-Center’s Gus Whitcomb says, “You have to add in delivery and in-home service to any comparison costs before you do an apple-to-apple comparison.”

George from Florida says “My house was broken into and they stole my laptops. Now rent a center does not to replace my laptop. Because we moved and didn’t provide them with the address. Now they are saying that we have to pay for the laptop that they do not want to replace it. This company is just out to get your money when is not even your fault.”

In one other case Luis from New York experienced level of trouble after he signed an agreement for a bedroom set, since he was moving. “GOD only knows how many calls I made thru out the week, and still no results. Just fake, promises. And all these people could say are lies, after lies. So please stay away, from this company, unless you want to end up with a heart attack. Lies after, lies after lies.” Says Luis.

The industry contends that it doesn’t really sell merchandise-it mainly rents it. This allows store to avoid violating state usury laws-which regulate the highest rate that can be charged legally-despite true annual percentage rate (APR) of 75 percent to 350 percent, says Ed Mierzwinski of the U.S. Public Interest Research Group. “They promote dream of ownership to poor people who are grossly overcharged for what is often used or low-quality merchandise.”

People with bad credit or low incomes may feel they have no other options.

The Best advice spending $38 to rent a big-screen TV for a super Bowl party might be a good deal. But over the long term, rent-to-own contracts are like subprime mortgages for washing machines and pullout sofas. If you miss a payment, the merchandise may be repossessed and you’ll lose the money you’ve paid.

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