We’ll say it – appliances are expensive. They are also pretty necessary to our lives. When you need a washer and dryer like yesterday, you might find yourself scrambling to research all the loans and payment plans for appliances.
When you find yourself with a broken fridge full of food or wondering what to do with a load of wet laundry when the dryer fails, you’re facing an unexpected and costly expense to replace these appliances. Getting the money you need doesn’t have to be complicated, though.
From rent-to-own to loans for appliances, let’s dig into the options to find the best fit for your situation:
Rent-to-own & Lease-to-Own
Over the years, rent-to-own and lease-to-own have become a popular payment plan for appliances. Much like payday lenders, the rent-to-own industry tends to target people with low incomes, bad credit and little understanding of finances. While it may seem like a great option at first glance, a more expensive reality lurks in the fine print when you run the numbers. What seems like a convenient way to get the appliance you need at a small monthly or weekly cost, ends up costing you much more in the long run than if you had just purchased it outright.
For example, “[A TV] has a cash price of $1,609.03 or requires 87 weekly payments of $41.99 per week for a total cost of $3,620.31.” (Source) If you run the math, you’ll discover that the interest amount of $2,011.28 means you end up paying more in interest than the total cost of the TV if you had just paid cash. Suddenly that good deal looks like a very bad deal.
Buy Now, Pay Later
We’ve all seen it advertised at the big box stores: buy now, pay later. This short-term financing option allows customers to make a purchase while deferring payments to a later date. Typically, BNPL lets you delay repayment for a period of three months to a year, sometimes at 0% interest. While this can be a good option for some, it’s important to realize that missing even one payment can have serious implications including late fees, voiding your promotional APR or being reported to credit bureaus and hurting your credit score.
Credit Card
You can use a credit card for just about everything, but should you? Credit cards are peak convenience, and most major retailers accept them. Like other financing options, you can pay off your credit card purchases over time. There’s a big difference, though. Credit cards can cost you hundreds of extra dollars (beyond what you originally purchased) through variable rates and fees. Compounding interest, late fees – and even interest charged to your late fees. If you don’t want to risk paying a lot more for that dishwasher than you originally intended, a credit card may not be your best bet.
Personal Loans
Personal loans, like those offered by World, are a smart way to get the money you need for a major purchase – expected or unexpected. We work to find the loan that is best suited for your unique financial needs and situation, taking your full financial picture into consideration. World loans strive to keep things clear and simple, with a goal of setting our borrowers up for financial success. With a fixed rate, you’ll always know how much your payment will be and when it is due, so you can plan your budget accordingly. This is a smart way to get the money you need without having to deplete your cash saving or relying on lending options like rent-to-own or buy now, pay later.
If you’re thinking about replacing an appliance, consider how your options will impact your financial journey. The smart choices you make today set you up for success tomorrow and down the road.
Ready to get the money you need? Apply for a World loan today.