New homeowners and renters alike are finding out how expensive furniture is. In fact, the average renter spends nearly $8,200 to furnish a one-bedroom apartment.
Even furnishing a single bedroom can be cost prohibitive. A new bed and matching dressers cost nearly $3,600 on average.
The good news is that the financial industry recognizes the growing cost of furniture. In turn, they are offering attractive financing options for shoppers.
Before you start shopping for a new couch, make sure you access a furniture financing calculator. This calculator will help you establish a shopping budget and determine what monthly payments look like.
Why Should You Use a Furniture Financing Calculator?
A financing calculator allows you to plan ahead. In order to make wise financial decisions, you need to establish a budget.
There are two different shopping scenarios that make a furniture financing calculator helpful. The first occurs when you have all the furniture selected and a total price in mind. Here, the tool helps you calculate the resulting monthly payment.
The second scenario is when you are unsure the total purchase amount you can afford. You have determined what amount is affordable on a monthly basis and need to figure out your purchasing power. Some trial and error is likely required, but you can ultimately back into the total purchase amount.
What Do You Need to Use the Calculator?
By design, finance calculators are easy to use. There are only a few inputs to enter to determine your monthly payment.
The most obvious input is the total purchase amount. If you are in the planning stages, this figure does not necessarily need to be final. A rough estimate is appropriate for preparation purposes.
Two other important inputs are the interest rate and term of the loan. The interest rate is likely to vary among different lenders. The term of the loan dictates how long you will be making monthly payments.
Some finance calculators do not require you to input interest rate or loan term. This is likely because the lender offers one financing package and the terms are predetermined.
The final input is the payment periodicity. Lenders offer some flexibility on how frequently payments are due. While monthly payments are the most common, you can opt for biweekly payments.
Why Is Financing Furniture a Great Option?
As mentioned in the introduction, furniture is increasingly expensive and, in some cases, unaffordable. By spreading the principal amount over 24 months, consumers find the loan payments more realistically.
The fact is that 30 percent of Americans have just $1000 saved. This is certainly not enough to pay for a large furniture purchase in cash. Financing gives cash strapped Americans a means to furnish their homes and apartments.
There are also financing options out there for consumers with bad credit. This helps shoppers that don’t have access to credit or use credit cards with unreasonable interest rates.
A Recap of Furniture Financing
Financing is an effective way to make furniture purchases more reasonable. Now, financing calculators allow you to plan ahead for the big investment.
If you are looking to use a furniture financing calculator, check out our website and apply for credit today.