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There are many ways you can buy goods like furniture, electronics, and other household or lifestyle goods. This includes:
- rent to buy options
- buy now, pay later agreements
- no interest loans, if you’re eligible.
If you’re thinking of renting to buy household items, it’s best to compare the costs between renting to buy and buying the item outright. You can use our rent versus buy calculator to work this out.
Buying options you can use
You may be able to get part of your income support payment early. Getting an advance payment depends on:
- the type of payment you get from us
- how long you’ve been getting this payment
- whether you can afford to repay the advance within 6 months.
You may qualify for a No Interest Loan from Good Shepherd. A no interest loan has 0% interest and no fees or charges. You can pay the loan back at a rate that is manageable for you This can be an easy way to get goods without the added stress of interest payments. You can pay this loan back through Centrepay.
You can use a no interest loan for essentials like appliances, furniture, car repairs or rego, a new phone, laptop, medical, dental or vet expenses. Find out more about no interest loans and whether you’re eligible on the Good Shepherd website.
Lay-by lets you to pay for goods over time. You pay a deposit and then regular amounts over a certain time frame. There’s no interest charged on lay-bys. You can’t take the goods home until you’ve finished paying for them.
Buy now, pay later is a payment option many stores, including online shops, offer. It gives you the chance to buy something, take it home and pay for it later. There’s often a set amount you’ll pay each fortnight over an agreed time frame. You may need to pay a small amount or deposit when you buy the product.
Before choosing to enter a buy now pay later agreement, check that you’ll be able to make the repayments. If you make any late payments, it has the potential to affect your credit rating. This may have an impact on future loan applications. Companies who offer this payment option act like banks. They can charge you:
- late fees
- monthly account keeping fees
- payment processing fees
- establishment fees.
Find out more about buy now, pay later services on the Moneysmart website.
Some shops have interest-free deals that let you take goods home before you pay for them. Interest free doesn’t always mean cost free. Sometimes there are fees and charges and the deal may only be interest free for a specific period of time. Find out more about interest-free deals on the Moneysmart website.
Overdrawn bank account
Some companies will take the money straight from your bank account or credit card on the same day each fortnight. This will happen until you pay them the full cost of the item. If you forget about the payments you may overdraw your bank account.
If you overdraw your account, your bank can take money from your account to recover the money you owe. This includes from your Centrelink payment, which our Code of Operation normally protects. If you use a buy now, pay later option, the Code of Operation won’t protect your income support payment from these companies.
The company and your bank may charge you fees too.
Keep in mind, if you don’t need your goods straight away, saving for them or using lay-by is a safer option.
Renting goods
When you rent things like a TV, fridge or washing machine, you enter a consumer lease. This will cover rental details you’ve agreed to like payment dates, amounts and timeframes. It can seem like an easy way to get goods that you can take home straight away. But there are risks.
Keep in mind, at the end of the lease, you may:
- have paid more than it would have originally cost you to buy the item
- have paid more than the item is worth
- not own the item.
Before you sign up, you should check all the costs. This includes any fees and charges on top of regular rental payments. Renting can be very expensive. You can find out more about consumer leases or, borrowing and credit on the Moneysmart website.
Tools for managing your money
We have tools to help you manage your money.
Rent vs buy calculator
Use the rent versus buy calculator to compare the costs of renting or buying something. It may help you save money. Use it before you sign any consumer lease. You may be paying much more than the item is worth. Read more about consumer leases and borrowing and credit on the Moneysmart website.
Simple money manager
If you buy multiple items with different companies, you may find it hard to keep track of your spending. You can use our simple money manager tool to check if can afford the repayments.