Young or old, a person operating a household at some point needs new furniture. There is always a reason to redecorate a home. People sometimes buy new pieces because they are wary of a look and want something fresh. Still, household items are not free. People must find a way to pay for purchases.
- Mixture of Cash and Credit
- Rent to Own
- Payday Loan
- In-Store Financing
- Credit Cards
- The best and sometimes not so easy method of buying a chair, tables, or adding an outdoor kitchen is by paying cash. Some people will save for big-ticket purchases, carefully preparing their finances for a purchase, while others struggle with monthly payments. Cash is the best way to avoid excessive debt for purchases. In addition, there is no concern about repossession of the merchandise. If for some reason, a person cannot make payments for the merchandise in a timely fashion.2. Layaway is a method very close to cash and does not carry high-interest rates. People place a deposit on merchandise and collect it after it is paid off. This sounds simple. However, layaway is filled with its own problems. A fee is charged upfront when the transaction takes place. Depending on store policy, a person might lose his or her deposit as a penalty for not paying for purchases in the time allotted. Layaway is a long established method of paying for cabinets, and payments are usually set up in increments. Some stores, however, have no payment plan but do have a designated completion date for payment.3. When a homeowner is buying household goods, the purchaser has many options, including a type of cash payment, a mixture of cash and credit. This is the infamous 90 days same as cash method of financing appealing to some. A person buys the merchandise on credit. If paid off before 90 days. The loan carries no interest. This equates the loan with a cash payment. However, unless a person is relatively stable financially, this is not the best option. Since interest on loans extends the cost of the merchandise, which originally was a no-interest loan.
4. Rent to Own real estateand product purchases is one of the scariest ways to make a big purchase. This purchase style does have the advantage of no credit check; no money down, and may very well be delivered the same day. On the downside, the purchaser may be paying double the cost once interest is added into the equation. If a person pays cash, they get a better deal and have no fear of a bad debt loan.
Payments are due each week or two weeks depending upon the contract. Interest rates are atrocious on these loans and if a person cannot make stiff loan payments. The furnishings are quickly repossessed. Unfortunately, the purchaser loses everything they have paid on furnishings. This type of acquisition verges on predatory lending. This is one of the riskier ways to purchase furniture.
5. Pay Day Loans offer an expensive option with a short payback period. A payday loan offers the advantage of no credit check and quick money with few requirements. This all sounds easy enough. However, until you look closely at the amount of interest, and the horrendous fees if money is paid late. These loans are easily approved if a person has an active bank account, is of legal age, and meets the earning requirement. However, if they falter in repayment, a payday loan can send them spiraling into a seemingly endless sea of debt.
6. In-Store Financing is a favored method of buying home goods. Stores work with customers to find them loans for living room and bedroom items. Very much, like a car dealership. A financier agrees to loan customer’s money dependent upon credit and other requirements in conjunction with the seller. In some cases, the company selling the product guarantees the loans.
7. Using a Credit Card to buy furniture is not the most desirable way to purchase a big-ticket item. Yet, it is done. Unless the purchase is paid within the thirty-day credit period, credit card interest is charged. This can make it difficult to climb from under credit card debt and increases the burden of debt for some buyers. In addition, a large purchase on credit cards is not viewed favorably by lending agencies.
If you are looking to decorate your home on a budget there are several ways to get the look you want after taking all your options and routes towards new furniture into consideration.