The high cost of furnishing your home
Families in financial crisis often have no other choice than to turn to rent-to-own. Unable to afford to buy products outright people are forced to rent essential household items – like cookers, fridges and washing machines – at extortionate rates of interest. Sometimes paying nearly three times more than the initial value of the product.
Take a basic fridge.
The cheapest model from a rent-to-own store: £200.13
Delivery and installation: £55
Weekly repayments over three years: £3.25
At 69.9% rate of interest, the total cost: £507
An equivalent basic model to buy outright from a high st retailer available: £109.99
In order to service their debt, families are forced to make impossible decisions about what they and their children should go without – food, heating or other essential items.
And live in fear of missing a repayment.
A case study from StepChange Debt charity
A client had two rent-to-own credit agreements that had fallen into arrears. He said that a collections agent from the rent-to-own provider had visited his property and forced his way into the house by pushing past his partner at the door and had been threatening. The agent only left when the client said that they would call the police. The client made a formal complaint to the rent-to-own provider but there was no resolution as they claimed there was no evidence.