I remember as a kid, putting things in layaway seemed to be the thing to do. This was before store credit cards and you could easily put things you wanted aside and make weekly payments. Plus, in my mom’s case, it seemed to be a good way to hide gifts until it was closer to the holiday or birthday.
I’ve been hearing about stores bringing layaway back. I don’t hear of as many people using it as previously. Stores, like Kmart are even offering a online layaway program. Layaway does offer an advantage over store credit cards for people with unfavorable credit or those who don’t want to risk racking up high credit card bills.
Depending on the store’s policies, here’s some thoughts to consider:
- Do they offer price adjustments?
- What happens if you miss a payment?
- Can you cancel your layaway without any penalty?
- Are there any costs to initiate layaway?
- Any other fees/costs to consider?