SOURCE: Association of Progressive Rental Organization

Association of Progressive Rental Organization

June 24, 2009 23:50 ET

Compare Rent-to-Own With Credit Cards in Tough Economic Times

AUSTIN, TX--(Marketwire - June 24, 2009) - The economic crises centering around consumer debt creates closer scrutiny regarding credit card pricing and penalties tied to consumer debt. The recent economic crises prompted the U.S. Congress and President Obama to pass credit card reform legislation. Consumer debt also prompted millions of consumers to compare credit card pricing with other consumer alternatives such as rent-to-own.

The Association of Progressive Rental Organizations (APRO) compared the minimal payments between the credit card transaction with the no-debt rent to own transaction regarding a $1500 refrigerator. These comparisons are based on the advertised $99 / month rent-to-own transaction and credit card calculations generated from

The longest rent-to-own payment plan a customer can choose is 24 months. Therefore a $1500 refrigerator at 24 months at $100 per month would generate a total cost of ownership of $2640 with tax.

The longest credit card payment plan a customer can choose based on the minimal payments that begin with $37.50 is 194 months. The minimal payment is reduced with each monthly payment. Therefore a $1500 refrigerator at 18% interest paying the minimal monthly payment would cost $1865.39 in interest with a total cost of $3365.39. The customer would own the refrigerator in 16 years.

Both rent-to-own and credit card total costs are cheaper with shortened length of payments and early purchase of goods such as computers, furniture, appliances and electronics. The most significant advantage with rent-to-own compared to credit cards is the customer never incurs debt, can return the product at any time without penalty and is never obligated to make the next payment.

Rent-to-own companies freely proclaim purchasing consumer durable goods outright is the best financial option. As with any transaction including rent-to-own, the least amount of payments over time will save the consumer money. Rent to own terms are as flexible as the consumer chooses yet never legally obligates the consumer with debt. If the customer must return the product, then most rent-to-own companies offer "lifetime payment reinstatement" whereas the customer can reinstate their payment history at any point in their lifetime.

The Association of Progressive Rental Organizations (APRO) has spent more than 25 years helping improve the rent-to-own industry to become one of the most vibrant consumer industries in America. For more information on rent-to-own, visit

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