Layaway has been a lost marketing strategy for a while, but is now back at many large retailers. The theory is very simple and came about in the 1930's depression era when there was limited money to spend; like now. A customer finds an item or items and pays a small amount down, and the remainder over 8 to 12 weeks. The store holds the item until paid for, and you take it home. Seems easy but there are some problems. For most stores there is a fee that is non-recoverable. Depending on the amount of the purchases, it could be between $5 and $10, and there is a minimum amount that must be met. So, as with credit cards, it is easy to spend more than a person has at any given time, and is faced with paying a lot to retrieve the items. Some stores allow online layaway, but others require in-store payment. But what happens if the item you select goes on sale just before the holiday and you have paid full price? And, even worse, what happens if the store closes abruptly which is happening with more frequency? Retailers want us to buy more than we can afford and we have become a spending nation and not a saving nation.
A far better idea is to return to the former system called the "Christmas club". You deposited a set amount of money in a special account at your bank starting in the summer. And then, just before the holidays, you withdrew the money and went shopping. Of course now, if its the Bank of America, they will charge $5 instead of paying interest. In any event, read any and all agreements covering layaway's, and CYA! Covet your assets...
A far better idea is to return to the former system called the "Christmas club". You deposited a set amount of money in a special account at your bank starting in the summer. And then, just before the holidays, you withdrew the money and went shopping. Of course now, if its the Bank of America, they will charge $5 instead of paying interest. In any event, read any and all agreements covering layaway's, and CYA! Covet your assets...
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