Take A Look At 21st Century Layaway

Lately we have seen a re-emergence of traditional layaway plans as a popular way to purchase items. The internet has also spawned online versions of layaway shopping. Services like are now available that allow its' members to shop online for products and make automatic payments over time. Once an item is paid in full it is shipped to the consumer.

It is nice for consumers to have so many payment choices when cash is short. If online layaway sounds good to you, keep the following in mind:
Some online layaway services only allow you to shop for products through their website which limits your selection.
Online layaway services vary in the rules on how to make payments.

Payment choices could be in any one of the following ways:
auto-debit from your bank account;
mailing a money order to the company;
charging a credit or debit card;
other channels online using a payment services company.

Pay attention to any transaction fees or cancellation fees the layaway service charges. If you decide that you do not want a product after all there may be a steep penalty fee. In addition to traditional in-store layaway plans, online layaway is gaining traction as more consumers consider it. Do your research, read the fine print and choose the program that works best for you.

Here is a bit of history about layaway. Department store layaway plans have been around for decades. Before the mass popularity of credit cards, cash strapped shoppers relied on layaway plans to set aside purchases at a store and make periodic payments toward the full price. Once paid in full, the customer could take the product home. Seems like a strange concept in our buy now, pay later world.

With credit card companies cutting consumers off, people are turning to other options. However, shoppers should be aware of potential drawbacks and ask the right questions of the store before signing up.

Layaway Tips
Ask for the merchant's layaway policy in writing and check:
Layaway terms
how much time do you get to pay for the merchandise;
when are your payments due;
what is the minimum payment required;
are there any extra service fees for using layaway?
is there a penalty for missed or late payments?

Refund policy
can you get a full refund if you decide not to purchase;
is there a service fee if you cancel the purchase;
do you only get store credit for the amount you paid?

Layaway can be a great choice as long as you know the rules up front.