Federal Reserve Board's Credit Card Report Shows Americans May Be Turning to Debt-Free Options Such as Rent to Own and Used Home Furniture

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The Federal Reserve Board released its monthly report showing consumers cut back on credit card use for the third month in a row reflecting a debt-cautious economy. ShopRTO responds to this trend by educating consumers on other options such as buying used and rent to own.

Get the best used deals at rent to own

Consumers are using credit cards less during hard financial times

There is no debt with rent to own.

Home lifestyle website, ShopRTO, cautions Americans against further consumer debt during shaky financial times. In response, ShopRTO recommends consumers consider rent to own to buy used or to acquire home furnishings credit free.

ShopRTO recommends that the first and obvious tip is to save enough money to buy home furnishings outright. But, many Americans do not have this option especially when families must have certain items for the home such as refrigerators, beds and even computers.

Since current trends show Americans are rejecting credit card use, consumers should look at buying used or renting to own.

When going the "used" home furniture route, try rent to own stores. Rent to own statistics show more than 70% of consumers return the merchandise within three to four months leaving an abundance of barely used furniture, appliances, HDTVs and other home furnishings.

The key is finding the right store that provides the item needed. Call stores nearby and ask for the manager or owner. The manager and owner are the ones who have the most stakes in generating revenue and in power to providing the best deal.

When making the deal, make sure to include delivery in the price. Rent to own stores offer free delivery as part of their transaction but make sure it is included. And, if possible, negotiate better deals between two different rents to own stores to see if one will provide a better deal.

If you rent to own, go with the 90, 120 or 180 days same as cash option. Most stores offer a cash price a little above retail and credit is not extended therefore no debt is incurred. The trick is to make the necessary payments to make the most out of the deal.

If the cash price listed is significantly above retail then ask the person in charge to adjust it. Negotiations may be more difficult with corporate chains then with locally owned businesses so consumers need to be aware of that dynamic when shopping rent to own.

If you are unable to make the 90, 120 or 180 day payments then change to a traditional rent to own payment plan. The price will already be reduced due to previous payments. And, with rent to own, the customer is in full control of the transaction. And remember the golden rule of all transactions, the fewer the payments then the lower overall cost.

If the customer has to return or wants to return the product, credit was never extended therefore no debt incurred or negative impact to credit scores. Therein lies the significant difference between rent to own and a credit card.

If the customer has to return the product due to financial reasons, the rent to own store will keep the product or provide a similar product if the customer wants to begin re-renting the product without losing any previous payments.

About ShopRTO.com:

ShopRTO provides affordable home decorating and lifestyle tips for Americans and when rent to own may be right for their home shopping choices.

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