Rent to own avoids the legal obligation of debt as credit is never extended.
Austin, TX (PRWEB) October 31, 2014
Affordable home living website, Shop RTO, explores the different aspects of the '90 Days Same as Cash' promotions many retail stores offer. They offer the following explanations and tips to make sure consumers use the option wisely.
Many retailers, rent to own furniture stores and short-term loans offer ’90 days same as cash’. Each are different in the their terms and obligations so consumers must pay close attention to the details of the offer.
If used wisely and for certain circumstances, ’90 days same as cash’ can offer consumers the ability to buy home furnishings or for a loan but experts say to use the option with fiduciary responsibility to maximize its benefits.
The advertised special states if the customer can pay off the item or loan within 90 days then no interest is charged or additional fees. Rent to own furniture stores are one of most popular retailers to offer the special and makes the most sense if shopping under uncertain circumstances.
Most rent to own stores offer the ’90 days' option and many go even further up to 180 days. If consecutive payments are made within the 90 days then the home furnishing is purchased at the same cost as the cash price.
The rent to own transaction differs greatly from traditional retail because rent to own avoids the legal obligation of debt as credit is never extended in a rent to own agreement. With rent to own, the customer can return the product at any time for any reason without penalty and legal obligation.
If the customer cannot fulfill the payments within the 90 days then rent to own payments are changed according to the customer. The customer can choose lesser amount of payments, lesser number of payments or a combination. Experts always stress with any payment plan that the less payments, the more money is saved.
The fact that payments have already been made guarantees a reasonable final price. Consumer experts advise shoppers make sure the original cash price advertised aligns with the cash price on the market. And, to shop around as cash prices can vary widely amongst different rent to own companies.
The ’90 days same as cash’ retail option is the same premise as rent to own but it is a legally obligated debt the customer must pay. If the customer cannot make the payments within the 90 days then interest is charged and many times higher interest than a credit card, sometimes up to 20-24%. Experts urge consumers to ask what the fees, interest or costs will occur if the '90 days same as cash' is not fulfilled.
In retail the ’90 days same as cash’ price is a good deal but are counting on you to not be able to complete the payments which triggers additional fees, penalties and interest. Experts warn consumers to be fully explained each of these factors prior to signing the contract.
’90 days same as cash’ specials are also loans. Those offers are good if the customer is in a bind and is confident the loan will be paid off. Experts warn against the 90 days loans for loans more than $1000. And to ask in full detail and disclosure the terms and fees that are incurred if the loan cannot be paid within those 90 days.
Shop RTO stresses that any ’90 days same as cash’ can be a good option but only with discipline and a financially calculated plan to pay the amount within the 90 days.
About Shop RTO:
ShopRTO.com provides consumers home living and decorating tips and rent to own as a shopping option for affordable home furniture and more.