Filed under: The Economy, Budget
It’s that time again when the stores will be crowded with thousands of consumers all vying for the same toy, special sweater, hottest electronic device. How do you plan to purchase it?
The current crumbling economy has sparked interest in a form of retail purchasing that became popular in the early 1900s, that of Lay Away. How does it work? It’s simple. You, the consumer would like to buy something but don’t have the money. All you do is make installment payments on the merchandise. The merchant stocks your item away until your last payment. You receive it once your tab is paid in full. Of course this is different than a credit card purchase which allows you to take home your intended product and make payments while using it.Although stores like Walmart did away with this form of procurement years ago, Kmart stayed in the game. Stores currently offering layaway plans are:
- Burlington Coat Factory
- Kmart
- Marshalls (at select locations)
- TJ Maxx (at select locations)
- Benny’s (New England)
- Sears ( through December 23)
- Cato – (offering 30-day plans)
- Men’s Wearhouse
- Boscov’s
- Value City Furniture Stores
- Footlocker (at select locations)
- Best Buy
- Toys-R-Us
Plan on taking advantage of this service? Be sure to READ THE FINE PRINT.
1. Get a copy of the store’s layaway policies
2. Understand ALL of the policies – schedule of payments, rules regarding late fees, refund and exchange policies, markdowns on sale items, etc.
3. Keep a good record and all receipts of payments (in case there are any disputes later).
Until you make all the payments, the store has your merchandise AND your money. For this reason, I prefer to use cash, debit or credit cards OVER layaway, any day. Assuming I can pay off the balance in a short period of time. It’s true, credit card companies charge interest, therefore depending on the length of time it takes you to pay off the debt and the interest charged, your purchase which was originally on sale could potentially cost you much more in the end. However, I just can’t bear the thought of someone using MY money while I have nothing to show for it. Also, sad to say in these critical times retailers are closing doors for good, left and right. If you have something on layaway, on which you’ve been faithfully making payments and the store closes, you’re out your goods as well as your cash. Of course the choice is yours.
If you know of other stores, please let us know in your comments.
