Q: I'm thinking of purchasing some new furniture for my home, but I'm not sure the best way to do it. Is there a big difference in the way I finance the purchase? What if I can't afford to buy it only with cash?

A: First of all, the best way to purchase anything is with cash.  Often, that can get you an instant discount (be sure to ask first).

Payment Method: Cash
Terms: Pay now
Cost to Consumer: $500

Payment Method: Furniture Co. with 0% interest for 1 yr.
Terms: Pay $25/mo.: 1 yr. @ 0%, then 23%: 9 mo.
Cost to Consumer: $519.21

Payment Method: Credit Card with 0% interest for 6 mo.
Terms: Pay $25/mo.: 6 mo. @ 0%, then 18%: 16 mo.
Cost to Consumer: $545.83

Payment Method: Credit Card
Terms: Pay $25/mo. (min.) @18%:  24 mo.
Cost to Consumer: $598.92

Payment Method: Rent-to-Own Co.
Terms: Pay $13.99/wk.: 78 wk.
Cost to Consumer: $1,091.22

Payment Method: Payday Lender
Terms: Pay $100.07/2 wk. @20% bi-weekly
Cost to Consumer: $4,425.01

Using cash will also avoid any costly fees or interest charge.   Be sure to know what you’re getting into.  Never use the rent-to-own or payday lender options; they are just debt traps and should always be avoided.

If the only pricing programs available to you are the more expensive options, perhaps you may need to post-pone the purchase until you build a better cash situation.