Weekly payment store debt is usually considered by people who struggle to pay for expensive purchases. These purchases can be household items such as furniture, appliances and many more. Brighthouse, Buy As You View, or Perfect Home are suppliers that allows a pay weekly or rent to own items.
These companies enable big purchases and repay it through small weekly instalments. Though this may sound like a good deal, we suggest you consider other options available.
The Factors to Consider when Buying from a Pay Weekly Store
Can costs more over the period
The items that you can buy from a weekly payment store are twice the original price than buying the items outright. This is because the interest rates are usually around 50% APR and because it’s being spread over 3 years. This can sum up to an unaffordable amount when calculated. Aside from that, the prices of goods are higher from the other shops.
Possible costs for additional insurance
These stores may also sell their own insurance coverage if you don’t have insurance coverage for home items or goods. This insurance can sum up to large costs over the agreement period. Most of the time, you can pay lesser for content insurance that covers the entire home goods rather than one item alone.
The ownership belongs to the store unless fully paid
The type on contract utilised by most of the rent-to-own shops is hire purchase. This means that you do not own the item outright. You have to pay in full under the agreement to legally own the goods.
Once you fall behind payments that store can take the item back, even if they need an order from the court to put this in place. Though they will get your goods, you will not get the payments that you’ve made.
Also, you are not allowed to sell the items or use them to sure credit unless you’ve paid the entire amount. Doing so is a criminal offence because the goods are not legally yours yet.
However, if you wish to return the goods, you are legally entitled to do it. Usually, you won’t have to pay any if you’ve paid half of the agreement and the account has not defaulted.
Getting caught in a pay weekly loop
Since the agreement for a weekly payment store is normally over 3 years, after you’ve paid the debt, it’s possible that you may think of replacing the item. Besides, you might be tempted to take more items as you get used to it. This can costs you a lot of money over the period.
Other Options to Pay Weekly Stores
If you need to buy essential items, you can try to explore your options or alternatives such as:
Charity Shops and Events
There are a lot of charity shops that sell home items or goods along with high street shops. The goods they sell are mostly new and are in good condition. In fact, these are checked before putting into a sale. You can check the nearest charity shops through a google search.
Credit unions offer reasonable loans at low-interest rates that are affordable for you. Some of the credit unions also offer goods that you can pay through weekly instalments at a lesser amount as compared to getting it in a pay weekly shops.
Online Auctions and Classifieds
You can also check trusted websites if you need items for your home. You can set alerts so you’ll get notified if the items or goods you need are on sale. These are delivered into you home with small costs involved and sometimes may drop off the prices at its lowest,
Another alternative is the Freecycle network, that enables members to give – and get – goods for free. Also, there are Facebook groups where people exchange or donate undesired things. Be careful though when considering with Facebook groups as they can seldom be the target of online scammers. Scrutinize the group first before you agree.
Local Welfare Schemes
Your local council may be able to supply the essential household goods that you need if you’re financially struggling. This can be accessible for people who are in emergencies and can’t afford to buy essential items. They can also dispense budgeting loans with limited access.
Furthermore, you can check the Children’s Society, to know more about the local welfare schemes throughout the UK.
If you have a weekly payment store debt and struggling to secure payment week after week, it’s a sign that you need to seek debt help and support. It is always ideal to act on the situation while it’s still early. You have a debt problem if you’re having a hard time managing your income to meet debt payments. Call us or use our debt advice tool for free to get impartial debt help and advice.