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The following post is by MSG staff writer, Shondell of Call Me What You Want, Even Cheap. She blogs about her recent car loan and mortgage pay off of over $95k and a whole bunch more. Check out her blog right here.

When you move into your own place, there are so many things you need and so little money to buy them that often times you may find yourself overwhelmed. There are companies out there that will allow you to rent to own furniture. I have never rented furniture before, but I know several people who have, so I thought I would shed some light on how it all works.

When I was in college, most of my friends were moving out on their own and didn’t have the money to buy all of the nice furniture that they wanted, so they decided to rent to own furniture instead of saving the money to buy it out right.

Rent to Own Basics

There are many rent to own companies and most of them have a presence on the internet. You can visit their website and register yourself. Here are the basics of how it works.

Eligibility

To be eligible to rent to own, you have to have a place to live, a regular source of income and a few friends who can be your witness. The rest is plain and simple: you get the things you need, pay the rent and own the items at the end.

Down Payment

Many rent to own companies do not require a down payment. However, no down payment also means that it will take much longer to pay off. It is recommended to put something down.

Delivery and Installation

The products are usually delivered and installed by the rent to own companies with no extra charge to you. Delivery is often made on the same day that you sign the contract. So you don’t have to wait for weeks to receive the products.

Payment Plan

With most companies, you can choose to pay the installment on a weekly, biweekly or monthly basis, whichever suits you the best. You can even choose to shorten your payment schedule by lump sum payments whenever you have money available.

Warranty

Most rent to own companies provide full warranties which cover repairs or replacement of defective parts and products during and after the payment schedule. You should avoid companies that do not provide a full warranty.

Return of Products

Most companies allow you to return the products you have taken with no questions asked as long as they are not damaged. If you have already paid the amount in full, you will be able to obtain the same or different product of the same value.

At the end of the payment period, which could take a few months to several years, the products are yours and you will be free to do whatever you wish with them. Different companies may have different policies to attract customers. If you do decide to rent to own furniture, you should do a bit of research on the internet and also by visiting their office before signing up with one.

[Ed. Note: I have never rented furniture either but do have friends that went the rent to own route. The biggest takeaway is to not go in over your head buying stuff. One friend was smart and used a rent to own company to get some basic furniture that he paid in full within a few short months. The other friend went all out and got leather sofas and chairs among other high ticket items. He never paid them off in full and even was dinged when trying to return them for some damage. Make sure you only get the basics and not something to try to impress others with.]

Have you ever rented to own furniture or anything else?

Image courtesy of Maggie Smith / FreeDigitalPhotos.net

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