1. people who overspend
   people who don't have credit
2. both of the above

Rent-to-own stores typically cater to the working poor who don't have enough savings or credit to purchase big ticket items, like a new refrigerator.

1. paying for used items on a payment plan
   paying for new items on a payment plan
2. renting an apartment with the hopes of owning it

Rent-to-own involves paying for a big-ticket item, like a television, on a payment plan. Once the payment plan is complete, you own the item.

1. no deposit
   10 percent of the total cost
2. 20 percent of the total cost

One of the advantages of rent-to-own is that you typically do not need to make a large lump sum deposit.

1. There are no payment requirements.
   A minimum of three payments must be made.
2. A minimum of five payments must be made.

You can stop making payments at any time, but of course, you must then return the item to the store. This means that you are not locked into any contract for continued payment.

1. No credit rating is required.
   A mediocre credit rating is all that is needed.
2. A good credit rating is required.

Rent-to-own stores do not rely on credit. This means that people with no credit rating, such as those who have claimed bankruptcy, can purchase a rent-to-own item.

1. seasonal workers
   parents who need expensive children's items
2. both of the above

Seasonal workers, who need big-ticket items for short periods of time, may want to rent merchandise. Moreover, parents who need expensive children's items, like musical instruments, may want to rent rather than buy.

1. layaway
   in-store credit
2. both of the above

Other payment options include layaway and in-store credit, but these options are different from rent-to-own. Layaway requires you to make large payments in a short-period of time, while the item is kept in the store's possession. In-store credit involves steep interest rates and is essentially a loan, therefore you must have a credit rating to qualify.

1. renting an item for a very short period of time
   renting an item for a moderate amount of time and then returning it
2. renting an item for a long time leading to purchasing the item

Renting a big-ticket item for a moderate to long period of time, even if you eventually own the item, is not financially wise. You will end up paying huge interest rates.

1. twice as much
   three times as much
2. five times as much

Rent-to-own may seem like a dream come true, but keep in mind you end up paying three times as much. For example, a standard desktop computer that costs $800 up front, would cost you over $3,000 dollars in total on a rent-to-own plan.

1. They charge over the legal limit in interest rates.
   They don't require a credit check.
2. both of the above

The New Jersey Supreme Court in 2006 ruled that rent-to-own stores violated state law by charging over 30 percent interest to its customers.