It is Halloween, and it seems as if holiday merchandise has been creeping its way onto store shelves for about a month now. In fact, today we received a toy catalog from Kmart with images of Christmas trees and jingle bells all over it. The next two months are not only a busy time of year, but they can be expensive too. I have noticed lately that stores like Wal Mart, Kmart, and others are advertising that they now offer layaway.
When I was younger (back in the 80’s) I remember seeing signs in the stores for layaway. I do not remember my parents ever using layaway, but then again they may have – not all of their holiday shopping was done with my sister and I present, you know. With this renewed focus on layaway, I am wondering whether it is a good idea. I do know that many people begin their holiday shopping with the intent of paying off the balances that they run up on their credit cards shortly after the new year begins. I also know that many times, other things come up and the balance does not get paid off right away. In fact, there are more than a few people that are still paying for last holiday season’s purchases. Is it possible that layaway could help prevent consumers from accumulating holiday debt?
Layaway is a method of buying items with cash, but not paying for them all at once. Normally, each store will set a date by which items that have been placed on layaway must be paid for in full and picked up. You then make weekly payments of a portion of the purchase price. If you do not pay in full by the date that the payment is due, you can not take the items home. Some stores will refund all or part of the money that you had paid towards the items but store policies vary, so please be certain that you understand the terms and conditions of any store where you plan to use layaway. If you make a realistic budget and stay within your means, using layaway could be a tool that could help you get through the holidays without accumulating any new debt – that would be a wonderful gift for you to be able to give yourself.
Photo by cohdra on morguefile.com.