JACKSONVILLE, Fla. – You've probably seen their commercials on TV. The website Fingerhut.com is a rent-to-own business that offers low monthly payments on electronics and other items as a more affordable option than purchasing everything up front.
But consumer watchdog groups say customers aren't really getting good deals. Instead, they're paying much more in the long run. Those payments add up to a lot more than the original price of what you're buying. Local financial planner Titus Pittman says it's typically not a good idea to use a site like this.
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"I would say probably never, and only for the simple fact that this is a way to play on the consumers emotion. This is a time where it's people want things now- quicker and faster. These websites and companies create a way to have those but, it comes with such a hefty price." according to Pittman.
According to Consumerist.com, the company lists a Sanyo 58 inch LED TV retailed at $999 as discounted to $899. At that price, a $59.99 per month payment may seem like a more reasonable option. However, you'll end up paying around $1,300, almost $300 more than the original price.
Pittman says there are red flags you need to look out for. If the deal is too good to be true, there is usually some underlying reasons why that's the case.
If you don't need the item right away, the best option is to always save. "If they're not under any time constraints the best way is to do a monthly budget and start saving some dollars to pay for that purchase. If it's not the whole amount maybe if you had half the amount, that would give you more leverage to make that purchase.
Pittman also suggests selling any used electronics or devices you don't use anymore to get cash for those. Always check retailers like Walmart, Sam's Club and others because a lot of times, they have discounted prices that may be more affordable.