Putting items on layaway seem to many to be a quaint tradition of Christmas past, much the same as the bank Christmas Club savings account. With the easy availability of both band and store credit cards, layaway went out of fashion. By did you know that there are still many large stores that offer layaway plans? And a layaway plan may be a great option to help you avoid credit card debt.
What is layaway?
With layaway, you are able to purchase a product and then pay it off gradually. You don’t actually take possession of the item until it is completely paid up. You never go into debt, because you aren’t exactly using credit. If you don’t make your payments on the item or items, you can forfeit them. Most policies will allow you to get your money back, minus any cancellation or initialization fees. Most stores charge $5 to put something on layaway, so this option is best used for larger ticket items.
How do you layaway?
First you determine what you want to purchase. If you can’t afford it at the moment but are confident that you can make payments on it, you use layaway. You’ll pay that small upfront fee and a percentage of the price of the item, usually 20 percent. You’ll then need to make regular payments. The frequency will be determined by the length of the layaway. Most stores will allow you to put something on layaway for up to 60 days (or eight weeks). Some stores limit you to 30 days. Usually, layaway is not available for purchases made online.
Where do you layaway
Here are some of the stores that are currently accepting layaway as far as I know. You can usually find information about the layaway program on the store website or at the customer service desk. Make sure you know exactly what the rules are about layaway, including any fees or time limits.
Marshalls/Homegoods
Sears
Kmart
Burlington Coat Factory
Toys R Us
TJ Maxx
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