Are firms like BrightHouse really worth buying goods from if you’re on a tight budget? The answer is a resounding NO!
So, your old TV is on the blink. Your friends have all-singing/all dancing, curved smart TV’s with 3D and 4K. But how do you afford it? Well, you check out the BrightHouse website and find exactly what you want and discover it will only cost you £23.75 per week. That doesn’t seem too bad because after all, what’s that? It’s less than the cost of three packs of cigarettes each week.
Who is BrightHouse?
BrightHouse is a rent-to-own retailer who has been operating for over 20 years. Rent-to-own means that when you shop with them you pay by making weekly payments, and that product becomes yours when you make the final payment. In short, your item remains the property of BrightHouse until you finish paying for it. And if you miss payments, not only will you have to pay a charge, you could also lose your item.
I’ve picked on BrightHouse as they are the most well known. They aren’t the only company that offers weekly payment methods like this though. Others include Forbes Rental and PerfectHome.
But it doesn’t sound expensive…
Sure, when you break down anything into weekly payments, it doesn’t sound expensive. Take a look at this LG Curved 55″ TV.
First of all, you’ll notice the weekly payment amount, and that’s what they want you to focus on because it doesn’t sound too much. Then the product price is next (more on that later). Then delivery and installation, which you can often get for free from retailers when you’re spending so much. Next, the total price, number of weeks, APR and the total payable. Now make sure you look at this box. £3705! That is more than twice the cost of the TV.
If you were to shop around, you would find exactly the same TV at Richer Sounds.
As you can see, buying from Richer Sounds will save you over £600 on the price before taking interest into consideration. Richer Sounds also offer a Buy Now, Pay Later scheme. For a fee of £29, you don’t have to pay for your TV for ten months and there’s no interest. If you were to save 23.75 a week for ten months, that would equal almost £950. Find a little extra and the TV is yours in less than a year. If you went with BrightHouse, you would still be paying for the TV for another two years and it wouldn’t be yours until the end.
Any other options?
The only real reason to consider BrightHouse is if you have a poor credit rating, so you may not qualify for a scheme like the Buy Now, Pay Later from Richer Sounds. If you are desperate for that new TV, then take a look at a credit card for people with bad credit scores. Visit MoneySupermarket for a comparison. These cards can have an interest rate of 40% or more, but they are still cheaper than interest from BrightHouse. Plus you will be able to purchase your item from a retailer that has a far more reasonable price. If you use a credit card, make sure you pay as much as you can each month to keep the interest cost down.
The best option
I hate to sound boring – but save. You could cut the cost of your appliances by £100’s if not £1000’s. If you need a replacement straight away, then try Freecycle. This is a site where people give away their old items instead of binning them. Okay, so some of the items need sprucing up but there are some great bits to be had. Plus it will give you the chance to save up for something new.