Cash Advance Payday Loans Vs Rent to Own Services

If you are like most folks then you probably live from paycheck to paycheck and don't have much, if anything, left over each week. Most folks nowadays find it near impossible to save any money for making a large purchase for any type of necessity or luxury items such as appliances, furniture or a new TV.

With this being the case it is no wonder that the rent to own services are booming because even though they offer rather high ticket items for a much higher than usual price (usually double). That is due to the fact that they allow you to purchase an item on a payment plan with no credit check.

They will even deliver it to your home for you (so they can verify that you live where you say you do) and if later on you can not make your payment they will simply show up to repossess the item. This is no harm, no foul, but you just can't use the item anymore unless you can come up with the payment.

A payday loan however is a better solution and you will actually pay less in finance fees than you would with the rent to own service. Let's look at an example of how this works.

Let's say that you need a new refrigerator and the rent to own place has one used for $500 cash or $1000 on payments for one year. At this price your payments will be about $20 per week or $80 per month.

Now, let's look at the same purchase but this time you take out a payday cash advance loan to buy the item outright. So you borrow $500 from your payday loan lender with a $50 finance fee. You can buy the same refrigerator for $500 cash and only pay $50 extra when the payday loan is due. But you won't need to have it all on the due date.

The due date should be your next payday so what you do is this. You use your paycheck to repay the loan in full for a total of $550. Then you take the $80 that would be your monthly payment at the rent to own place and you subtract it from the $550 which comes to $470. So now you immediately borrow $470 until your next payday. Then you do this over and over until the loan is completely paid in full.

By using the payday cash advance loan instead of the rent to own place you will accomplish 3 things. First of all, the item will become your property free and clear from the rent to own place. Second, you will most likely save at least a couple of hundred dollars on the purchase compared to the rent to own payment plan.

Third, you will now have a built in safety net in the event you can not make the payment in full because most payday loan lenders offer an extension option. This means that if you can't repay the loan in full on its due date you can simply pay the finance fee and extend the loan until your next payday.

In the long run, you will save money on the purchase and still be able to establish a payment plan with no credit check and you do not have to worry about losing the item due to non-payment. All in all, it's a win, win situation for you.