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Personal Finance

Rent to own’s early purchase option and reinstatement rights make RTO more attractive

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shutterstock_156431330The rent to own transaction has more to it than meets the eye. The most appealing and unknown are the payment reinstatement option and the early purchase option.

The two most misunderstood aspects to the rent to own transaction is you’re obligated to the same payments. And, if you have to return the product, you lose all payment history. Not true. At any time, you can pay off the remaining payments in one swoop at 50%. And, if you cannot make payments on that HD TV or couch and needs to be picked up, the store will keep it for you just in case you want to resume payments.

The 50% off early purchase option is an important factor when budgeting with rent to own. Try saving up a little each week while making those rent to own payments until you can pay off the rest and save a bundle. Using the early purchase option makes renting to own refrigerators, tablets, beds and whatever else for the home more affordable. And much more affordable than minimal payments with a credit card. And, debt nor credit is extended with rent to own.

With payment reinstatement rights, stores will keep the product for a certain amount of time to see if you want to come back and resume payments at the point where you left off. This way, you don’t lose any of your payment history. In many cases, payment reinstatement rights can last a long time even for your lifetime for many companies. Obviously, it won’t be the exact same product but they will make sure it will be similar or better. And since your credit is not effected with rent to own then any payment history being disrupted won’t hurt your credit.

Rent to own home furniture, washer/dryer combos and refrigerators have come a long way. Consumers need to know all the aspects rent to own offers to make the best decision when acquiring home furnishings. It all depends on your financial circumstances and needs at the time.

Payment reinstatement rights and early purchase options are wedging rent to own’s presence in all market areas and with more mainstream companies. And, moreover, rent to own is becoming the fourth transaction option, up there with cash, credit and used.

Be sure to shop your local rent to own stores in your neighborhood. Each RTO company will have different policies regarding payment reinstatement and early purchase options. And play off rent to own competitors against each other to get the best deal for you.

Just another Shop RTO Home Lifestyle and Personal Finance tip.

ShopRTO provides consumers home living and decorating tips and rent to own as a shopping option for affordable home furniture and more.

Check out some Shop RTO gas saving tips

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Saving gas means saving money.

Try these gas saving tips to help your budget.

Summer means road trips with the family! Like the Griswalds, eh? Therefore we find ourselves in the car more which means using more gas. And gas means money and with gas prices being so unpredictable, it’s best to conserve no matter what.

Shop RTO offers the following tips regarding some best practices to keep the car fuel bill as low as possible.

Shop RTO stresses the obvious which is not to drive. Walk or use a bicycle whenever possible. If the bus or carpool is convenient then use that option.

Shop RTO points out riding a bus offers a less stressful drive and opportunities to get some work done, personally and professionally, while someone else is driving. Car pooling is another option. Split the driving duties amongst the group and save, literally, days of gas.

Working at home, whether full or part-time, is another good option. Even if it’s a couple days of the work week. Still helps greatly. You can remotely log in from home. Or have your work computer as a laptop to take with you wherever you go even the coffee shop. Communication via text, e-mails, video conferencing continue to make that a more effective option. Working at home is becoming more common and employers are becoming warmer to the idea.

If driving is the only viable option, Shop RTO points out the following gas saving tips when driving.

Remove the junk from the trunk. The less the car weighs, the less gas is needed. Many Americans leave unused and unnecessary items in the trunk.

Find the quickest route to the most common places and use regularly. Shop RTO points out that time in the car is more important than actual mileage. The more time spent in the car is wasting gas. Time several routes until the shortest is found. Use the many apps, google maps, mapquest or the local news websites as tools to help.

Shop RTO claims one of their best recommendations is to not speed up to stop. When approaching or knowing a stop sign or stop light is ahead, let off the gas pedal and coast to the stop. This tactic saves immensely on gas over time as well as wear and tear on the brakes.

Park in spots that are easy to get in and out. Most of those spots are further away but also avoid the energy wasted trying to wait or maneuver through the most crowded areas of the parking lot.

Avoid car idling by avoiding drive-thrus and waiting for passengers. Turn the car off to wait or park and walk in to get what is needed.

Use the air conditioner as less as possible and always check tire pressure to make sure tires are properly filled.

If you’re highway driving, use the cruise control as much as possible. Constant use of gas is better gas saver then the natural fluctuations driving without.

Just another Shop RTO affordable home lifestyle and gas saving tip.

About Shop RTO:
ShopRTO.com provides consumers home living and decorating tips and rent to own as a shopping option for affordable home furniture and more.

Are you taking advantage of your tax breaks?

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Tax credits available

Take advantage of all tax breaks.

The tax code is a complicated formula and changes each year. That’s why accountants have job security. Here’s a few tax breaks many Americans do not take advantage that should.

Charitable contributions. Even if it means baking cookies for the fund raiser or running errands. You can write those off. Write the amount of the ingredients you bought and car mileage can be written off at 14¢ per mile.

You can write off moving expenses for that first job as long as you moved further than 50 miles. You can’t write off the costs of finding that job just the moving expenses. Those write offs can be for 23¢ per mile.

If you’re paying for child care, make sure to claim your child care tax credit. And a tax credit is better than a deduction as it matches the reduction dollar to dollar.

How about the Earned Income Tax Credit? IRS claims 25% of Americans do not take advantage of this credit. It is designed to help lower income families supplement their wages. You have to file a return and can be complicated. To find out if and how much you qualify for, go to the IRS website and follow their questions to see.

There are many areas to get deductions and credit. The above are the most pertinent to the working person. Go to the IRS website to fully delve into the best way to file and the amount you have to pay or are owed.

Just another Shop RTO personal finance tip.

ShopRTO provides consumers home living and decorating tips and rent to own as a shopping option for affordable home furniture and more.

Consumers want “180 days” rent to own payment plan for home furnishings

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rent to own furniture payments

Payment of ‘180 days same as cash’ appeals to consumers.

When consumers in a national study asked if “180 days same as cash” payment plan option would fit in their budget when shopping rent to own home furnishings, the answer was a resounding ‘yes’.

Almost all rent to own stores or RTO stores offer 90 days same as cash payment plan. Some go to 120 days and even others go up to 180 days. If customers have the ability to create a rent to own payment plan within 180 days that gives them the same competitive retail price then they were ready to own.

You get to buy the item at a retail price but never having the legal debt or obligation as long as you pay the amount within the 180 days. That is significantly difference than a 6 month loan or extending credit for a six month period.

With rent to own, the customer is not legally obligated to purchase the product as in a credit sale. There’s no legal debt. No legal contract to make the next payment and you can return the product at any time for any reason at no penalty.

If you can’t make the total payments then you’re put on a traditional rent to own payment plan in which you will pay more in the long run if you choose to continue payments. But, rent to own stores offer early purchase options where you pay 1/2 the remaining balance and own it in one fell swoop.

Some respondents thought 90 days may be too tough to make the proper payments. 120 days seemed better but if given 180 days to pay off that bedroom set they were excited with that payment plan.

Now the question is if your local rent to own stores offer 180 days same as cash. Make sure to check around and ask for all of the details regarding their “same days as cash” option.

Just another Shop RTO rent to own and personal finance tip.

ShopRTO provides consumers home living, finance tips and rent to own as a shopping option for affordable home furniture and more.

Tax season is here, know the basics before you file

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TaxtimeDepending on your situation, tax season can either be like an extra holiday — complete with a check from the government, or like going to the dentist — complete with an outstanding balance owed to the government.

In either case staying on top of current tax codes and tax lingo is key to filing accurate returns.

Key terms:

Familiarize yourself with the following key terms and what they mean. These words are sprinkled throughout your tax return. Knowing exactly what they mean is critical.

Earned income – Salaries, wages, tips and professional fees, including taxable scholarships and fellowship grants.

Unearned income – Investment-type income like interest on your savings account, dividends and capital gains, as well as unemployment compensation. 
Gross income – All income you received in the form of money, goods, property and services that is not exempt from taxes.

Exemptions – A predetermined amount of money you can deduct from your taxable income for basic living expenses. You, as an individual, may be an exemption, and dependent children (which you probably are to your parents) qualify as exemptions.

Standard deduction – A set amount of money that the federal government gives you if you meet certain stipulations. It differs according to marital status.

Itemized deductions – There are six main categories of expenses that can be deducted: medical and dental, taxes, interest, charitable contributions, and casualty and theft losses. Itemized deductions reduce the amount of tax you owe. 
W-2 Forms – Wage-income forms that you receive from employers in order to prepare your taxes.
Filing status – Whether you are single, married or head of household. There are several sub-categories within each of these as well.

Deciding Whether (and What) to File

Depending on your gross income, you may or may not be required to file. For example, in 2008, all single individuals under 65 with a minimum gross income of $8,950 were required to file. Even if your parents (or someone else) can claim you as a dependent, you may be required to file if you meet certain income conditions.

When determining your income, be sure to include all taxable income you receive. If your scholarships are not taxable, you need not include them in your income. (Non-taxable scholarships carry no service requirements and are used to cover education-related expenses).

Choosing a Form

To file your taxes, you need to fill out one of three basic forms:

There are a number of different types of income tax returns. You must use the tax form that corresponds with your particular situation and allows you to claim the income, deductions, credits, etc. that apply to you. The most common types of income tax returns include the following:

Form 1040 (U.S. Individual Income Tax Return) (a.k.a. “the long form)
Form 1040A (U.S. Individual Income Tax Return) (a.k.a. “the short form)
Form 1040EZ (Income Tax Return for Single and Joint Filers With No Dependents)
Form 1040NR (U.S. Nonresident Alien Income Tax Return)
Form 1040NR-EZ (U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents)

IRS Tax Form 1040 (U.S. Individual Income Tax Return)

Form 1040 is the standard federal income tax form used to report an individual’s income. It is also known as “the long form” because it is more extensive than the shorter 1040A and 1040EZ Tax Forms.

More here

Before filling out your 1040 or visiting your local tax preparation expert, be sure and have the following documents on hand:

Proof of identification

Filing status and residency status

Social Security Numbers for you, your spouse, and any dependents

Dates of birth for you, your spouse, and any dependents

A copy of your past tax return

Statements of wages earned (e.g., W-2, W-2G, 1099-R, etc.)

Statements of interest/dividends from banks, brokerages, etc.

Proof of any tax credits, tax deductions, or tax exclusions

Your bank account number and routing number (for Direct Deposit)

Income The IRS defines “income” as any money that you receive during the given tax year. Most people can simply review their W-2s (Wage and Tax Statements) to determine their annual income. Taxable income, generally speaking, is the gross income of an individual or corporation, less any allowable tax deductions. It’s important to realize that taxable income can encompass more than just your annual salary.

Taxable income can include profits from stocks or real estate sales, as well as winnings from the lottery, betting on horse races, or any casino (domestic or abroad). Even the cash value of bartered items is considered taxable income. Income that may be part of your gross income but is not identified as “taxable income” would include: child support, proceeds from life insurance policies, inheritances, Workers Compensation payments, Welfare benefits, compensation awarded as a result of physical injury, education scholarships or grants, and income paid to your retirement account (either a 401k or IRA, up to a certain amount).

Overall, taxable income is that portion of your gross income which is subject to taxation by the governing authority, minus any allowable itemized or standardized deductions.

Your taxable income is basically the amount of your income that is subject to income tax. [What qualifies as “taxable income” is defined in Section 63 of the Internal Revenue Code, and “gross income” is defined in Section 61 of the Internal Revenue Code.]

Adjusted Gross Income

Your Adjusted Gross Income (AGI) is defined as your gross income from all taxable sources, minus certain allowable tax deductions. These “allowable deductions” (also known as “above-the-line deductions”) may include unreimbursed business expenses, medical expenses, alimony, moving expenses, or deductible retirement plan contributions.

Your AGI is important when determining your overall tax liability because it can affect your tax bracket, how much you can contribute to qualified retirement accounts, and which tax credits you may qualify for.

On the other hand, “gross income” refers to all income that you received in the form of money, goods, property, and services that is not exempt from tax. This can include any income from sources outside of the United States, as well as income from the sale of your home.

Knowing the difference between deductions and credits — such as the Earned Income Credit (EIC) or Child Tax Credit will make a big difference in your final tax bill or refund so make sure you understand these thoroughly and if not, find someone who does.

Do It Yourself or Pay an Expert?

Filing on one’s own can be intimidating the first time out, but there are plenty of resources provided by the IRS to walk you through the process. If this is outside your comfort zone or you are not finding the answers to your questions, do not hesitate to consult a tax preparer.

Many can be found this time of year locally but rates and fees may differ so shop around. In either case be sure and ask for references and make sure the operation will still be open after filing season in case you or the IRS has any follow up questions.

More detailed information here

Just another ShopRTO personal finance tip.

ShopRTO provides consumers home living and decorating tips and rent to own as a shopping option for affordable home furniture and more.

Holiday shopping tips to keep you in budget

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Using rent to own to shop

Christmas Shopping Tips

The holidays are upon us which means shopping. So make sure you shop wise and within budget. Here’s a few tips to take with you in your shopping cart.

The first one is to plan and don’t wait until the last moment. Start now and watch for the best deals. Try some of the shopping apps that will scan the deals for you.

Make a list, budget and stick with it. That means identifying who gets presents and think of everyone. Count the white elephant presents for work or for the toy charity you donate. This will help relieve any surprises.

If you have to use credit, compare it to rent to own, especially for furniture. Payment plans are going to cost more so you’re going to want to minimize final costs. Compare what your minimum payments would be for a credit card and a rent to own agreement then do the math. You can get stuck with a minimum payment plan for years with a credit card.

Rent to own payment plans max out at two years for most agreements. You’re also not legally committed to the purchase, incur debt or obligated to own.

Cross people off the list and quit shopping. That’s the difficult part. Surveys show that a third of us will overspend by 30% so show some restraint and discipline. Yeah, right.

Just another Shop RTO Holiday and Lifestyle tip.

ShopRTO provides consumers home living and decorating tips and rent to own as a shopping option for affordable home furniture and more.

Save costs on your energy bill while keeping your home warm

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Save on bills

Keeping utilities down this winter.

As the temperatures drop you may notice your energy bills rise. Since there is no way to escape the chill we have some cost effective ways to trim your dues without having to freeze through winter.

We covered some tips on how to get your home fall ready that included one of the most important heat retention recommendations, “Seal It.”. In our article, “Is your home Fall ready?” we identified air leaks to be the culprits for heat loss. Now that it is winter you probably have noticed where drafts are entering and warmth is escaping, so take some caulk and seal them up.

Another remedy that we covered were window treatments. Heavy curtains or drapes can act as insulation for your windows and in addition to heavy window treatments, double glazing does just the same if not more. Double glazing is defined as “a double or triple glass window panes separated by a vacuum or gas filled space to reduce heat transfer,” which can be pretty expensive administer. For a short term and economical remedy look into DIY Double Glazing Film. It is just as effective and at the fraction of the cost. All that you will need is scissors and a blow dryer to administer. Taking advantage of sunlight when it’s visible by keeping curtains open allow for natural warmth. Area rugs can also be used as additional insulation especially for floors that aren’t insulated.

Whether you have electric, gas or radiator heating you’ll want to shut doors to rooms that aren’t being occupied or used in efforts to contain heat in one area. Secluding rooms in combination of using a heated blanket or space heater can also prove cost efficient when trying to avoid warming your entire home. If you have a radiator be sure to remove any furniture that might be set in front of it as they will absorb the heat and act as an obstacle for dispersion. You can also place a sheet foil behind the radiator to deflect heat from absorbing into the wall as well as placing a shelf a couple of feet above to help channel warmth outward into the room.

Cozy up and keep your home warm with our tips and if you’re in need for a seasonal appliance such as a heater, check out your local rent to own store for cost saving options.

Just another Shop RTO lifestyle tip.

ShopRTO provides consumers home decorating and living tips and promotes rent to own as a shopping option for affordable home furnishings.

Avoid debt and budget for Christmas

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Avoid debt with Rent to Own

Avoid debt this Christmas

Holiday season is here and with each year we promise ourselves that we will plan ahead and avoid debt as much as possible. We vow that by next Christmas we would have already completed our shopping so when December comes around we don’t break the bank. Well, December has arrived and if you’re like most of us who have experienced whip lash at the mere thought of how quick this year has gone by you might have been caught off guard. Not to worry, Rent to Own can help your budgeting needs.

Before you start scrambling thinking about your options that incur debt such as using credit cards, taking out a loan or even depleting your funds consider Rent to Own. Rent to Own offers consumers many advantages and especially throughout the holiday season with its biggest benefit being the no-debt transaction. Rent to Own transactions don’t require a credit check and will not affect your credit score. Customers are also free to stop payment and return the product at any time making this especially convenience for electronics since newer and better products are always around the corner. With that said, many stores carry a wide range of products such as furniture, appliances, HDTVs, computer gaming systems, computers and much more. Stores also offer flexible payment terms, free delivery, set-up and repairs.

Be sure to shop around as many Rent to Own stores are competitive and offer different prices and payment options. As stated in Shop RTO’s article “Thanksgiving guests? Rent to Own stores can help” be on the look out for ’90 days same as cash’ option. “Some go up to ‘180 days same as cash’. That means if you can make payments within 90 days, the total cost is close to retail and all the time you still get the debt free, no obligation feature that keeps you out of the legal obligation that credit cards put you in.”

It’s likely that Rent to Own is the just thing you need to help you get through the holidays. Now take a seat and draft that list because Christmas will be here in no time.

Just another Shop RTO holiday and lifestyle tip.

ShopRTO provides consumers home decorating and living tips and promotes rent to own as a shopping option for affordable home furnishings.

Negotiate your cable, phone and internet bill and save money

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Best prices for cable.

Haggle your internet bill for the best deal.

Most people are uncomfortable or do not realize the power you have negotiating your cable, telephone and internet bill or those package services. Save money and make the effort. You have nothing to lose and secondly, it costs the provider much more money signing a new customer than keeping a current one.

Here are some Shop RTO tips on the best way to negotiate a cheaper bill and/or better package service.

1. Find out when your contract is expiring and prepare your homework prior to calling them. Call three months prior to contract expiration to maximize savings and/or benefits and negotiating power.

2. Call customer service and ask them about your current package and if it matches current services offered. Telephone/cable/internet companies are always upgrading their basic services but fail to tell current customers that they have so you’re missing out on what you should get for what you’re paying. This is important because they may use that in their negotiations when you should be receiving those upgrades in the first place.

3. Determine what you want because they’ll usually offer several options – lower rates at the same service, same rates but with better service such as faster Internet speed, more free minutes, upgraded movie packages, etc. So know your priorities prior to know what direction to haggle.

3. Collect all of those mailers you get from their competitors on the great deals they are offering. Or, go to their website and get their offered specials there. You will need those in the negotiations.

4. Some say to go to customer service to start the negotiation but from our experience, go straight to cancellation department. They have the most incentive and power to negotiate. Remember, it costs them much less money to keep you than recruiting a new customer.

5. Be sincere and nice. It really helps. Tell them that their competition is bending over backwards to offer you a package that is too good to turn down. (Which they are but usually only for 3 months to a year.) That’s when the negotiations start.

6. Negotiate your deal on the priorities you set in step 3 until you’re satisfied. And, only agree to the terms for one year. Very important. That gives you next year to continue to negotiate the good deal you have or an even better one. When you get a good deal usually it’s only for one year and then they raise rates or take away added services.

7. Be prepared to leave. As you are well aware from the number of specials you receive in the mail or on advertisements, there are always great deals out there. Yes, it’s a pain switching services but it’s the only way to keep these companies in check providing the best package for the money. And, most of the time, they will not let you leave without offering you something.

8. If you hit a brick wall, don’t hesitate to talk to their boss. The higher up the ranks. the more they have to lose if they lose your business.

9. Don’t take their first offer. Push another time to see. Who knows how much rope they really have to let loose.

These companies know by research that us customers don’t want to spend the time changing providers so won’t try. And, in the meantime, your phone, cable and/or internet bill continues to rise. Or, they know you’re too uncomfortable in negotiating so they keep raising their rates. In this regard, the squeaky wheel gets oiled and you’re a paying customer so you have all of that working to your advantage.

We all need and/or enjoy these services but not necessarily at the rates they charge and continue to increase so do your due diligence and negotiate at the end of every contract term.

Just another Shop RTO lifestyle tip and money savings tips to save you some coin.

ShopRTO provides consumers home living and decorating tips and rent to own as a shopping option for affordable home furniture and more.

How does rent to own work vs credit cards?

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rent to own prices

Research continues to show rent to own transaction misunderstood.

Going with rent to own for affordable home furnishings differs drastically than credit cards. The first and main difference is the customer does not incur any debt. There is no obligation to make the next payment. And the customer can return the product at any time for any reason without penalty.

With traditional rent to own stores, credit is not needed to acquire household furniture, HD TVs, computers and appliances.

With credit cards, you have to be approved to get a credit card. When you purchase an item with a credit card, you’re legally obligated to make the payments. And, with credit cards, if you want to return the product, it is either difficult or costly and any payments made are lost.

According to the recent studies, the majority of Americans believe if you are in a rent to own transaction, you are legally obligated to own the product which goes against the whole point of rent to own. It’s a rental first with an option to own. And, no credit is extended removing legal liability if you want to return the product.

What is similar to using a credit card vs rent to own is that both have the flexibility of payments. The more money your payments are and how quick you make your payments determine the final cost if you choose to own the product. With both credit cards and rent to own payments, you can pay off the item at any time during the transaction. Paying an item off early saves you money.

Most Americans believe with rent to own your stuck with the same payments until the very end and do not realize the flexibility of the transaction.

The rent to own transaction is becoming more and more popular with Americans and retail shops offering the option to their customers. With credit and incurring debt becoming less popular and more difficult to obtain, more Americans are using the rent to own transaction but only after they understand it.

These recent studies conducted by APRO show when customers are presented with all of the features of the rent to own transaction, they are more likely to use it especially against credit cards.

Just another Shop RTO lifestyle and finance tip.

ShopRTO provides consumers home living and decorating tips and rent to own as a shopping option for affordable home furniture and more.

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