Rent-to-own companies offer furniture and home electronics for weekly or monthly payments that you can apply toward ownership. They set up a weekly rental payment plan that can last up to one and a half years. This can add up to an extremely high total cost. In most cases, if you miss a payment, the store will take the merchandise back, even if you already paid more than its market value.

If the deal seems too good to be true, it probably is. According to research by US PIRG, rent-to-own customers usually pay two to three times more than they would if they paid up front with cash, and significantly more than they would pay with credit cards. For example, a typical 78-week rent-to-own plan for a televisions set costs several times more than if you purchased the television with cash. On average, a 19” inch RCA color TV set costs $217. The same television set offered for 78 payments of $9.99 costs a total of $779.22. If you can only afford $9.99 per month or week, this may be your only option, but it can really add up.

Unfortunately, many people who sign up for rent-to-own plans lose their money and their merchandise when they can’t make payments. On the surface, rent-to-own stores offer people a way to get the things they want in the most affordable way. But the truth is that most people end up losing money and merchandise with rent-to-own plans.