This holiday season, it seems that every store is pushing layaway. This makes good business sense. With the economy the way it is, cash flow for many families can be tight. Also, time is limited. With layaway, shopper can get all of their gifts at one time, and then have the luxury of paying them off a little at a time.
If you decide to use a layaway program, there are some things that you should know. This way, you won’t wind up losing money on the deal.
First of all, check the store policy on layaway. Do you have to pay off your items by a certain date? Do you have to make payments of a certain amount each time? Is there a fee to put items on layaway? What happens if you wind up changing your mind on items or find that you can’t pay them off? What happens if the items go on sale? Understanding the ins and outs of the store’s layaway program is important.
Next, make sure that the availability is there. Not all store locations may be participating, and not all items may be eligible for layaway. Layaway is available online for some major stores, but the rules for online layaway may be different from the retail store rules. Make sure you check.
Add of the cost of your items. Make sure that you will be able to pay them off. Also calculate what the difference would be if you were able to purchase them straight without layaway. Sometimes saving up enough money for a few weeks can be done up front, and it will save you on the layaway fees.
Be wary of stores that ask for too much information for their layaway program. You shouldn’t have to give a credit card (unless that is how you are making a payment), a social security number or any information for a credit check. This is layaway, not a loan or a mortgage.
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