Aussies warned on rent -to-buy

By Mozo ·

Australians purchasing goods through rent-to-buy schemes rather than using their credit cards can find themselves getting into debt, an expert has claimed.

Australian Securities and Investments Commission senior executive of financial literacy Robert Drake warned that consumers getting involved in schemes of this kind need to be cautious.

"People don't have the cash saved up and they feel they want the item now," he told National Features.

Mr Drake added that consumers often end up paying over the odds for items purchased in this way, given the many hidden charges that are involved in the process.

Matt Levey, the head of campaigns at consumer group Choice, added: "If your issue is your budget I think the red warning lights should be going off."

The Daily Telegraph conducted a study recently that highlighted how shopping on certain days can help Aussies cut down on their spending and budget for their lives better.

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