Don't waste your money | Rent-to-own options can cost you big | Business

LOUISVILLE, Ky. (WDRB) -- Hoping to buy some furniture or an appliance at the Presidents Day sales but you just don't have the cash right now?

Some people are opting for rent-to-own programs. But consumer reporter John Matarese shows us why that's not the best idea so, you don’t waste your money.

With those holiday shopping bills now coming in, what can you do if you need a new refrigerator or washing machine this spring?

The easy solution may be renting, but that comes with a big downside.

Nicole Broomfield needed a new washer and dryer a couple of years ago. So she decided to go the rent-to-own route and bring home this new Kenmore set.

"It should have been $1,792 and some change," she said.

That's what she thought she would be paying for her one-year rental.

Until the company sent her a letter at the end of the year, and she learned she had been charged "a little over $6,000. Close to $7,000."

She ended up paying $4,000 extra!

But the money-saving site Nerd Wallet recently says this is common, especially with things like big screen TVs and sound bars, something most everyone wants these days.

Nerd Wallet priced a Vizio soundbar selling for around $148 dollars at places like Amazon and Best Buy. But Nerd Wallet says it will cost you close to $470 bucks at some rent-to-own stores.

Another case: a Samsung 4k TV retails for nearly $1,300, but it'll cost you $2,400 through rent-to-own stores.

Nerd Wallet found there may be cheaper options you may want to consider other than renting to own, including:

Buy now pay later
Subprime credit cards for people with poor credit.
And bad-credit personal loans.

Those can actually build up your credit score.

Nicole insists she was only told about the reasonable weekly payments, and she never read the fine print.

Next time she will look at other options rather than renting long-term.

Buy now pay later plans, with no interest, are the hottest trend for 2024. The only problem is that most require a soft credit check, so not everyone will qualify.

But they can be a better option than renting, so you don't waste your money.

To read more Don't Waste Your Money stories, click here.