Comments on: Stores With Layaway Option Seeing Increased Interest

By: Gladys

Gladys — Fri, 26 Dec 2008 15:34:46 +0000

I used Layaway for almost all my holiday shopping and did not incur any debt. Not only did Sears and KMart have layaway, but in the mall Champs Sports offered it and without any fees! Now that is being economically responsible.

By: Breaking the Monthly Payment Mentality | Frugal Dad

Breaking the Monthly Payment Mentality | Frugal Dad — Thu, 18 Dec 2008 19:00:31 +0000

[...] In fact, Blue Hippo is selling inferior, over-priced products through some sort of bastardized layaway or rent-to-own plan. Here’s an excerpt from his article; first a message from the Blue [...]

By: Christmas Gift Ideas Edition | Money Smart Life

Christmas Gift Ideas Edition | Money Smart Life — Thu, 18 Dec 2008 13:15:07 +0000

[...] Frugal Dad points out that stores with layaway options are seeing increased interest [...]

By: DavidK

DavidK — Tue, 16 Dec 2008 15:07:57 +0000

Strange, my experience with layaway program fine print usually means that if the product is on some sort of great sale, it’s not allowed to be put on layaway. The store usually wants to move those items because they are either discontinued, the season has moved on and new season stock must be put out, or an overstock situation has occurred. It seems to be different elsewhere.

I always thought that the layaway program was ok for people who really needed help to purchase a big ticket item or couldn’t save the money on their own. Unless you frequent that store, it’s kind of a pain to have to return on occasion to make installment payments for something you don’t even own yet. It also means that your funds are less liquid in the short term. Saving the money in an account you own means you could use it for an emergency if one should arise.

Also, who knows if the item may have a better sale price later when you have saved up the cash? I’d rather have the cash in hand.

By: marci

marci — Tue, 16 Dec 2008 07:32:32 +0000

I agree with Lynn – and that’s how I have used Layaway – I’ll go ahead and pay for it in full, and have them store it for me on layaway until right before it is needed – saving me having to hide it away, especially in the case of a large item. Other than that, if I can’t pay cash for it, I still won’t buy it.

By: Lynn

Lynn — Tue, 16 Dec 2008 02:10:12 +0000

I have a Christmas gift on layaway right now. I have the cash to pay for it in full, but I have nowhere in the house to hide it. This way, it stays out of the house for as long as possible. (There was no additional fee to put it on layaway, by the way).

By: The Penny Pincher

The Penny Pincher — Tue, 16 Dec 2008 00:41:22 +0000

I agree with Never The Bride. Here is my example. My local bicycle store had a great end of season sale with the bike I wanted at 40% off. I did not have the cash to buy it in October. However, they agreed to keep the bike with 10% down and I have 6 months to pay the remaining 90%. There are no other fees. It was a good way for me to get a bicycle at a good price rather than waiting in the spring when I would have the money, but at a time when bicycles would not be on sale. I could have bought a bicycle used, but I like my local bicycle shop as they do free servicing if you buy it at their shop. Yes, there is a small risk that I won’t be able to buy the bike, but I will save over $400 off the regular price of the bicycle.

By: Kate@LivingTheFrugalLife

Kate@LivingTheFrugalLife — Mon, 15 Dec 2008 23:23:13 +0000

I used layaway a few times as a young teenager. I never got burned by it. I suppose that layaway coming back is a good thing on the whole. It’s certainly better than credit cards in terms of the potential to pile up debt and seriously wreck a family’s financial situation. And at least people will need to pay in cash when they do pay.

Overall, I think that layaway was a good lesson for me as a young person: you have to pay for what you buy, and sometimes you don’t get everything you want instantly. It certainly served me better than having a credit card would have. I saved up my babysitting money to buy some clothes I really wanted. And having to wait to buy them meant that I had plenty of time to think about whether or not they were really worth the money I was saving up to pay for them.

By: Money Minder

Money Minder — Mon, 15 Dec 2008 23:09:45 +0000

If the alternative to layaway is to incur credit, layaway would be the smarter option. If for example you are buying winter coats for your children, by putting them on layaway you know exactly how much the coats cost and are assured that they will be there (in your kids’ sizes) when you need them. In an ideal world, everyone would save in advance for everything, but that’s not the reality, and this gives people an alternative to putting it on a credit card.

By: Craig

Craig — Mon, 15 Dec 2008 21:40:59 +0000

I think this is a bad move for consumers. In a time when the economy is poor and people need to save money and establish budgeting grounds, layover is a bad idea. Noe more people who can;t afford items will be buying. If you don’t have the cash, don’t buy.