Financial Circumstances Associated with Rent-to-Own Usage in a Time of COVID-Induced Economic Uncertainty

Document Type

Article

Publication Date

1-1-2024

Abstract

While the COVID-19 pandemic brought economic uncertainty to many, the literature contains limited information about household alternative financial services used during this time. This study examines how financial circumstances were associated with household rent-to-own product use during the COVID-induced economic downturn, and whether income instability was related to use across income groups. Findings suggest that income drops were strongly associated with rent-to-own use, moreover health insurance, credit record, homeownership, and banking status were also predictors. This study expands the knowledge base regarding the fringe economy participation and household financial well-being and offers steps for future research and policy considerations.

Publication Source (Journal or Book title)

Journal of Family and Economic Issues

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