Manage Your Life

Tuesday, December 1, 2009

5 tips for buying on layaway

Do you remember layaway? For those of you who don’t, it’s putting money down on items in a store that are put on hold for you in the storeroom, allowing you to make payments over time. Generally, layaway is interest free, but some stores do charge a nominal fee of about five dollars for the service.

Over the past year, layaway plans have been making a comeback. With the economy faltering in 2008 and consumers putting away credit cards, layaway or "lay-by" plans have become a popular service for stores looking to recruit and secure consumer dollars this holiday shopping season.

Layaway started during the Great Depression when people didn’t have the cash to make a purchase at once. A mainstay at stores until the 1970s and ’80s, stores started phasing out the service by offering the more lucrative and profitable store credit cards. Why wait to take your item home? Just get the store credit card and take your item home today and pay over time. This method worked until the current recession.




What stores currently offer layaway?

While Wal-Mart did away with layaway years ago, Kmart kept this feature of frugality. Now, more stores have dusted off the layaway counter. Here are a few nationwide stores with layaway plans available:
• Toys R Us layaway
• Kmart layaway
• Sears layaway (even online!)
• Foot Locker
• TJ Maxx
• Marshalls
• Men’s Warehouse
• Burlington Coat Factory

Remember, not all items are available for layaway and not all locations may offer layaway. Call your local store first to inquire if they are offering layaway service this holiday season.

Tips for buying on layaway:
1. Get a copy of the store’s layaway policies and staple it to your receipt.
2. Make sure you understand the policies such as maximum time between payments, schedule of payments, late fee policies, refund and exchange policies, markdowns on sale prices, loss or damage of items while in the layaway room.
3. Be realistic in what you can afford over time and what you put on layaway.

To read tips 4 and 5 click here

Don’t forget that until you pay off the items in layaway the store has your money and merchandise. If the store goes out of business while you’re still paying you could be out both the cash and goods so only deal with reputable businesses.

Share with us: If you know of other stores that have layaway service plans, please share in our comments area. Have you had positive experiences with layaway?

More from wOw:
Highlights From 'The Shriver Report: A Woman's Nation Changes Everything'


[Photo Credit: Shutterstock]

Syndication:

From the Community…

Comments 1-10 of 10
  • AngelaH's Avatar
    Posted by AngelaH Wed Oct 21, 2009 5:47am PDT

    Layaway is an overall good option. Maybe its in my best interest to put the credit cards away and pay in cash or layaway. And some banks still offer Christmas clubs or savings clubs, so start early.

    Report Abuse
  • Leah's Avatar
    Posted by Leah Wed Oct 21, 2009 1:44pm PDT

    When my 4 kids were still very young, and me being a single parent, layaway was the only way I was able to afford Christmas for my kids.

    Report Abuse
  • Marcia H's Avatar
    Posted by Marcia H Thu Oct 22, 2009 8:18am PDT

    Because of a economic rut I'm in and will be around the holidays I'm gonna have choice but to use layway. I have never used layway, but I'm gonna have to.

    Report Abuse
  • Socorro's Avatar
    Posted by Socorro Thu Oct 22, 2009 12:05pm PDT

    Great idea! I wish kholes and penny's department stores offered it's customers this lay-away plan.

    Report Abuse
  • desiree's Avatar
    Posted by desiree Thu Oct 22, 2009 2:27pm PDT

    toys r us does not have a layaway plan i just checked. i was thinking of doing the layaway plan so that i can shop early and get it all done and not have to rush when i get my holiday bonus. i can get clothes for the kids and set it aside. and i won't have to hide everything. my mom used to do this when we were kids at mervyns, back in the late 80's and early 90's.

    Report Abuse
  • SFgal's Avatar
    Posted by SFgal Fri Oct 23, 2009 9:45am PDT

    My mom paid for many things by layaway when I was a child. i remember stopping by various stores to put down a payment on clothes and other items. It seems so sane--I'm almost wishing i'd never gotten an actual credit card. I might try layaway myself, esp. if you can buy a sofa with it!

    Report Abuse
  • hotNspicy's Avatar
    Posted by hotNspicy Fri Oct 23, 2009 1:49pm PDT

    LAYAWAY IS THE BEST

    Report Abuse
  • Sharon's Avatar
    Posted by Sharon Sun Oct 25, 2009 4:24pm PDT

    sharonmartzolff5452

    I always use the layaway plan every Christmas. I am a single mom and there is no other way to do Christmas shopping for me. I don't know what I would do if all stores stopped having layaway. To me it is the greatest thing ever invented. I even use layaway throughout the year also, unless it is something I need right away.

    Report Abuse
  • lakesha c's Avatar
    Posted by lakesha c Sun Oct 25, 2009 7:32pm PDT

    layaway is great i just hate the long lines in the stores that have layaway because it seems like a big hassel waiting in a long line of people, i think the stores should be more prepared and equipped for the lawaway process.

    Report Abuse
  • cjurluv's Avatar
    Posted by cjurluv Tue Oct 27, 2009 10:50am PDT

    Great info, thanks was not aware that all of those places did layaway!

    Report Abuse
Comments 1-10 of 10

leave your comment

You must sign in to post a comment

Sign In for personalized information

New User? Sign Up

Updates Chatter on Shine…

manage your life byte

from Target

All kinds of wonderful. Gifts, solutions and savings all in one place. Find every merry solution at Target.