Beware the true cost of rent-to-buy products

rent to buy

rent to buyWith many of us on tight budgets, "rent-to-buy" household products might seem like a good way of getting what you need without paying a fortune for the privilege.

However, children's charity Barnardo's warns that if you acquire items using these schemes there is a good chance you might end up having to pay twice as much as it would cost to buy them in a high street store.

Subsequently, Barnardo's is calling on rent-to-own credit companies to display the typical internet and high street prices of the product they are selling to give customers a clear indication as to how affordable it is to purchase goods in this manner.

In its report, entitled A vicious cycle: the heavy burden of credit on low income families, Barnado's said that some rent-to-own credit providers make it difficult to compare prices as they do not always provide the manufacturer model number.

It then revealed that the Beko washing machine you might have had your eye on could cost up to £1,250 through a rent-to-buy scheme, whereas it would only cost £470 when bought on the high street.

Barnardo's chief executive Anne Marie Carrie said: "The poorest families are stuck between a rock and a hard place, with one in 10 households on low incomes managing their finances without access to mainstream banking services."

If you are at the mercy of the rent-to-buy sector, fear not, for these tips on saving money could help you put away more money each month to ensure you can afford that new appliance in next to no time.