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.
Related Content:
- Annuity Income Taxation As more baby boomers consider fixed annuities to protect retirement income, the issue of taxation of annuity income becomes an important factor. Because immediate annuity strategies are something we will be studying for our retirement,...
- 8 Ways to Save Your Money Buying Airline Tickets Higher gas prices coupled with the higher price of everything else has lead to astronomically priced airline ticket. However, there are still ways to save cash and find a deal. When you are ready to...
- Medical Treatment And Your Credit It’s a common theme on the news and in the papers, the cost of virtually everything is going up and more and more families are finding it harder to keep up with monthly expenses, let...
- Create Your Own Layaway Plan. Recently, I have seen a bunch of ads on TV for layaway plans at big box stores. I had no idea that layaway even still existed, as I only remember it from when I was...
- Make Money Online Let’s consider some kinds of businesses in Internet. Internet shops. The Internet shop is (model B2C - retail trade) a site on which it is established the specialized program (script), so-called "Virtual shop". On a...
Recent Comments