Use Layaways to Finance Your Purchases

Retail giant Wal-mart got out of the layaway business in 2006.  That has left a huge opening for other retailers to fill.  And, they are doing so in grand fashion.  But what really has consumer stoked about this is that it is a great way to finance your purchases with very little cost.  If you are looking for ways to make your holiday purchases, but do not have the credit or cash reserves to do so, then the layaway plan might be just the thing you need.

How it Works  

Choose your merchandise and take to the store layaway area where it will be held until it is paid off.  When you use a layaway in this manner, you are able to get the items that you want and need with no worries that retailers will be out of them when you finally save up enough money to be able to afford them.
What it Costs 

A small sum of non-refundable cash will get the layaway started then you make an initial down payment and then payments on the balance every two weeks.  Keep in mind that the layaway periods are 8 weeks and if your items are not paid for, then you forfeit part of your payments.  Be sure to check the retailer for details.

The Benefits 

This is better than a credit card because you do not pay interest or huge fees that eat up your money.  The payments are based solely on the amount of the items that you place in layaway.  Once your items are paid for, you go get them and bring them home.  What a great feeling that they are completely paid for with no worries about a credit card bill coming later in the mail.

This year, consumers used these layaways in larger numbers than ever to help with back-to-school purchases.  And with estimates of around $500 it was a worthwhile effort.

One caveat is that there might be a listing of items that are not allowed to be placed on layaway.  This is probably includes things like food, alcohol, live plants, photo services, dated magazines, prescription drugs, mobile phones, and PCs.  Look for a list at the retailer so that you know for sure.

Make sure that you compare prices on lower cost items.  These retailers might have higher prices and if you can scrape together the cash to pay for the small ones from a retailer that has lower prices you are being more responsible with your money.  So, use the layaway wisely.

This year, more consumers than ever will be looking for creative ways to make purchases for the holidays, and this is one method that is certain to be used on a greater basis.