Layaway plans make sense in an economic downturn, during the holiday gift buying season, or whenever money is a concern. Under a layaway plan, a consumer is able to work with a store to set aside either a single high-priced item or a group of several items, then pay a set deposit amount or an initial percentage of the total amount. The consumer leaves the item(s) with the store and makes installment payments until the total purchase price is paid.
When a consumer may not be able to afford a large purchase all at once, layaway is a good alternative to credit cards. When paying with a credit card, consumers can take the items home immediately, but they may have to pay interest on the purchase amount if they do not pay off the full amount of the credit card debt when it is billed. People with high credit card bills who do not want to take on more debt are discovering the interest-free benefits of layaway.
Layaway usually has no fees and requires no credit check to use. However, layaway is generally not available for perishable items or items already on clearance.
Layaway plans at stores may be difficult to find because many stores no longer offer them. Although the practice was once popular because it encouraged consumers to buy their goods, stores have generally abandoned layaway due to the convenience of credit cards and in-store discount cards, the cost of administrative fees to keep track of the periodic payments, and the need for expensive storage space for the merchandise on layaway. However, during the current economic situation, some stores are reconsidering offering layaway to allow cash-strapped customers to buy their goods.
With the Internet, consumers can select goods to purchase online through Elayaway.com. With Elayaway, customers determine a monthly payment plan that works for them, and payments are deducted from the customer’s bank account. When the order is paid off, the goods are shipped to the customer.
Find more information on layaway at Layaway Plans and in this article from the Los Angeles Times.
