Teljoy, who is 55 this month, talks to why the rent-to-own model is a game-changer for cash-strapped South Africans.
With interest rates and inflation being at an all-time high, and salaries and economic growth remaining stagnant, South Africans are suffering under the weight of debt and diminishing disposable income.This is leading to a new way of thinking when it comes to finances and getting budget smart.
This is where consumers pay an affordable monthly cost for big ticket items, rather than a large once-off payment, with the option of eventual ownership. “How we think about spending and consuming has to change in order to survive in this tough economic climate. This is where the subscription economy comes into play.”Rent-to-own is means of getting access to a wide range of home appliances, electronics and furniture on a month-to-month agreement.
“Teljoy is not a lender of last resort,” says Hurvitz. “On the contrary, we do not want to further indebt South Africans, and have practices in place to make sure that our customers are able to comfortably afford their products.”The benefits of rent-to-own over standard purchase are numerous.
In the case of rent-to-own, and specifically in the case of Teljoy, there is no interest rate as Teljoy is not a credit provider. Likewise, the monthly cost of Teljoy products is not affected by inflation.
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