The above terms might confuse others but the truth is these payment schemes are a blessing for consumers that does not have the financial resources yet to pay in full for products that they need in the near future. If this situation applies to you as well, you should know the terms and conditions about these payment schemes to determine which one is better suited to your paying capabilities.
Each one has their own merit but you have to remember that the store where you are planning to purchase the product might not offer all these payment schemes and you might not have any other option except for the payment plan that the store is offering
Rent to own
From how it is called, this payment scheme allows you to rent the product first, then you could decide whether you want to purchase it or to keep renting it. For example, you want to rent a refrigerator. The store selling it might offer a rent to own where you sign a contract that is weekly or monthly renewed. You would also have the option to either make low payments for a long time or make high payments for a short time.
If you choose the first option, you’d end up paying more for the refrigerator compared to paying for it in cash. If instead you don’t want to buy the refrigerator in the end or continue with renting it, you could just end the contract and return the product. One of the major advantages of this payment scheme over the others is that this does not require a credit check and fast approval of the application.
Lease to own
Lease to own on the other hand is for new items although this payment scheme needs a credit check and would require you to submit your debit or credit card where the monthly or weekly payment will be automatically deducted. Same with rent to own, you might also end up paying more if you avail of this scheme.
Lay it away
Not all stores offer a lay it away plan. This plan entails paying a deposit for the seller to put the product or item you want to buy on hold. The deposit might also include some other fees which is not included in the rest of the product’s price that you need to pay over time. If this is the payment scheme that you think might be more appropriate to your budget, look for a sample online layaway policy to have an idea of the terms and conditions.
Pay over time
Lastly, pay over time or buy now or pay later service lets you buy the item or product that you like without having to use your credit card or debit card in the store or online. This service will pay for your purchase on your behalf where you repay it over the next several weeks via a scheduled payment.
Before availing of any of these schemes, do your research thoroughly and read the fine print since the plans might vary from stores to stores.