Rent-to-own: Be informed before you sign

Imagine a store where you can pay as you go with no credit and get brand-name furniture, appliances and electronics for as little as $19.99 a week.

That's the marketing pitch for rent-to-own companies, which tout low prices, no hassles and instant gratification to cash-strapped consumers.

If you're considering a rent-to-own deal or are already in a contract, here's what you need to know.

HOW RENT-TO-OWN WORKS

You may rent from a well-known national chain , but the contract you sign is usually with a third-party leasing company, not the store itself. That means payments, repairs, returns and other services are handled by that company, not the store.

You usually make payments for a fixed introductory period, which can be a few months.