The Hidden Costs of Renting Furniture: How Rent-to-Own Can Keep Families in Poverty

Renting furniture might seem like a quick fix when cash is tight. You get what you need now, and pay a little each week or month. But behind that convenience lies a trap that can keep families stuck in a cycle of poverty. Rent-to-own stores like Rent-A-Center often charge sky-high prices and interest rates, making it almost impossible for low-income families to build wealth or escape financial hardship.

Let’s break down why renting furniture this way can do more harm than good, backed by real numbers, and share practical tips to avoid falling into this costly cycle.

Rented furniture in a modest living room, showing signs of wear

Rented furniture in a modest living room, showing signs of wear

Why Rent-to-Own Looks Easy but Costs a Lot

Rent-to-own stores advertise furniture and appliances with no credit checks and low weekly payments. Sounds perfect for families who don’t have savings or good credit, right? The catch is the total cost.

According to a 2019 report from the Consumer Financial Protection Bureau (CFPB), rent-to-own agreements can cost three to five times more than buying the same item outright. For example, a $500 sofa might end up costing $1,500 or more after all the payments and fees.

This happens because:

• High interest rates and fees are built into the weekly payments.

• No ownership until the last payment, so if you miss a payment, you lose everything.

• Short-term affordability hides long-term expense, making it hard to save or invest elsewhere.

  
  

Families paying $20 or $30 a week for furniture might think they’re managing, but that money could be going toward building real assets or savings instead.

Real Impact on Low-Income Families

Rent-to-own stores often target neighborhoods with fewer financial options. The CFPB found that these stores are more common in low-income and minority communities. This means families already struggling financially are more likely to pay more for basic household items.

Here’s what this looks like in real life:

• A family renting a $600 dining set might pay $1,800 over two years.

• If they miss a payment, the furniture is repossessed, and all previous payments are lost.

• The family ends up with no furniture and less money than if they had saved to buy used furniture outright.

  
  

This cycle makes it harder to build credit or save money. Instead of moving forward, families stay stuck paying for things they don’t own.

Practical Advice to Avoid Rent-to-Own Traps

If you’re thinking about renting furniture, here are some smarter moves to protect your wallet:

1. Buy Used Furniture

Look for secondhand options on platforms like Facebook Marketplace, Craigslist, or local thrift stores. You can often find quality pieces for a fraction of the rent-to-own cost.

2. Save Small Amounts Regularly

Even saving $10 a week can add up. Use a simple jar or a no-fee savings account. This builds a fund to buy furniture outright without high fees.

3. Explore Community Resources

Some nonprofits and churches offer furniture assistance or low-cost options for families in need. Reach out locally to see what’s available.

4. Avoid Weekly Payments

If you must finance, look for stores that offer no-interest financing or low-interest credit cards with a clear payment plan. Always read the fine print.

5. Prioritize Essentials

Focus on buying or saving for the most important items first, like a bed or a table. You can add other pieces over time without rushing into expensive rent-to-own deals.

Close-up of worn couch with rent-to-own contract and calculator

Close-up of worn couch with rent-to-own contract and calculator

Breaking Free from the Cycle

Rent-to-own furniture might seem like a lifeline, but it often pulls families deeper into financial struggle. The high costs and risk of losing everything make it a poor choice for building a stable home or future.