Holiday shopping is always fun. You wait for the whole year to grab the black Friday discounts to make your Christmas Extra special. But why you wait for the whole year when you have a cheapest way to avail the same discounts with Layaway? Feeling curious to know more about it? Read this article and know everything about a layaway plan.
Published On: 2018-10-26Blog Category: Shopping
Written By: Madiha Jamal
Glance over a newspaper, or browse the online retailing sites, you will always find the layaway plans popping around from the major retailers - either for festivities or throughout the year, a layaway plan never gets a holiday.
The holiday shopping season is just here, and the retailers are all set to stocking up their inventory for layaway plans.
Today, nearly 41.6% of people are Layaway shoppers; if you are from the one, you might be familiar with the word. But if you are from the rest of 58.4% of the people, then you might be curious to know everything about Layaway.
Don’t worry! I am here for your service! I did enough research to compile this information for you so you can know everything about Layaway in a single article.
I will give you a piecemeal so you can digest the concept easily;
Layaway is the process, in which consumers reserve an item for later pick up by placing a small deposit of their total purchase. And when the customers pay the balance, they can grab the product they laid away.
Layaway provides the customers the flexibility to pay the price bit by bit until they reach a zero balance of their purchase.
Before hitting the Layaway plan, read these guidelines to know how the layaway plan works;
Every store has its own terms and conditions. Before you sign up for the Layaway plan, make sure you understand all the terms. These are the general terms;
Why the holidays shopping worth it with layaway plans for some shoppers and why it is a viable option, here are some good reasons;
You can`t give a new bicycle to your son with a layaway plan without paying off for; but, it isn`t bad. Somehow, it`s making you save money for it, which is a good thing. It doesn`t mean to put you tight on budget to put extra money each month. You`ve got to do that for yourself.
With Layaway plan you cannot delay the purchase of a new bicycle of your son by saying that we are tight on budget, layaway helps you fulfill the wish of your child with forced savings.
Holiday shopping is always a hassle; you have to fight through the Black Friday crowd to make purchases.
But Layaway plans help you with it; you can get everything on your list in September or October and save you from abandoning your family on Thanksgiving weekend and Cyber Monday.
Just sit back and relax, because you have grabbed all the best gifts already.
Unlike debit cards, layaway doesn`t accumulate interest or raise the interest amount on each purchase.
Layaway helps you to save the interest cost you pay with your debit cards and avoid any negative impacts on it.
The most significant benefit of Layaway plan is that you will have to pay only the amount of an item you want to purchase without getting stuck into the installment fees.
You can claim a favorite holiday item even if you can`t afford to pay for it upfront by laying it away on later payments.
If you want to buy your favorite item and you are low on credit, a layaway plan can grant your wish.
For people with bad credit or low income, a Layaway plan helps them to buy that little bundle of joys by paying for it little by little.
If you want to shop for special events like wedding or Christmas, you don`t need to pay the funds all at once. Just reserve your items in the inventory for later pick-up and pay the cost in piecemeal.
Celebrate your big day without compromising on the things. A Layaway plan will be your best wedding planner.
With some benefits, Layaway programs have a few cons that you should consider before signing up. Everybody has its own perception, and the layaway program might not make sense for everyone, and that`s fine.
Here`s what to watch for.
To avail the benefits of Layaway plan, you have to pay some subscription charges.
Some stores charge a little number of your bucks to layaway items. For example, Toys`R`Us and Marshalls, charge a $5 fee to sign up for the layaway program.
Some stores require a $5 to $10 deposit, and if you fail to meet a 60- or 90-day payoff period, the store will charge you a restocking fee just to reshelve the items.
You have to pay a down payment when you put something on layaway. Like Walmart requires a down payment of $ 10 or 10% of the original price.
A $5 or $10 fee may not be a big deal as compared to a high-interest rate attached to your credit card accounts.
If you change your mind and cancel the purchase, you have to pay cancellation charges. Most stores will charge a cancellation fee usually between $5 and $10 for layaway.
Layaway plans have specific time limits to complete the amount. But, the time limit varies from stores to stores.
For example, Marshalls and T.J. Maxx have a time limit of 30 days for layaways.
Some stores also place limits to start the layaway contract around holidays. Like, Walmart shoppers can start their layaway plan only until December 12 this year.
Fair Advice: If you are not sure about the full payment of your purchase in the specific time limit, it might not be a good idea to start a layaway contract.
Another big disadvantage of Layaway plan is that you could miss out on hefty bargains while taking advantage of the limited-time sales prices.
When you pick an item on layaway, you`re stuck with its current price. When the same item goes on sale for Veterans Day, Cyber Monday or Black Friday, you will miss the grand discounts unless you cancel your purchase.
If you`re anxious about missing a deal or also want to get the best bang for your buck, a layaway program might not be a good idea.
One of the biggest disadvantages of having a layaway program is that you have to wait for the item until it`s fully paid off.
With layaway, you are stuck with the item you have placed on hold.
But what if you find that same gold ring for half price elsewhere? Or what if the kitchen mixer you have picked gets terrible reviews?
If you cancel the purchase, you have to pay cancellation charges. So either pay it up or live with it. No other option!
Retailers use the smart strategy by putting high-dollar items on layaway so that people buy it by paying the price in bite-size chunks. It makes it easy for them to sell their items by setting it on weekly payments.
Before purchasing something; ask yourself:
Can I truly afford it?
Does it fit into my budget?
Can I wait for too long to get the item?
The choice is yours!
Some stores put a limited number of items on layaway. Chances are you will not always get the item you want to buy on Layaway plan.
Probably you can`t buy computers, food, and liquids through layaway. It depends on the retailers` layaway programs.
When you are shopping with Layaway plans, chances are, it may lead you in an impulsive state of buying the things without even looking at your budget. It might be dangerous for you.
For example, when you see staggering jewelry that is worth $5,000, you will add it to your shopping cart even if you can`t afford it, because you have the advantage of paying it off later.
When the holiday shopping season begins, the giant retailers such as Amazon and Walmart retool their layaway programs. But there are other smaller merchants on the list who also consider adding a layaway program.
Following stores offers the best layaway Plans. Watch out for the best deals and spend your bucks wisely.
The e-Layaway works a bit differently than traditional layaway programs. e-Layaway allows you to open a layaway plan through your choice of multiple retailers. The retailer ships your purchase when you pay off though e-Layaway.
If you are tight on budget and also want to make larger purchases for the festivities, a Layaway plan can help you avoid the costs of expensive acquisitions.
Forget those depressive installment plans, when you can get the same benefit with small, manageable payments without the element of borrowing. It is better to save up than putting an entire Christmas or Halloween on credit.
Make your shopping list bigger and enjoy.
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I`m a long time layaway lady! It has helped me buy things went funds were tight, back in the day! Love this post! :)
hey Brenda, thanks for sharing your good experience with layaway. It works as a positive review for this post :-p
Great post! I don`t think that I have ever seen someone really break this all down in such a clear and concise manner. I`m sure this will help many people make smart decisions for their own individual situation.
thank you Britt for appreciating the effort. Yes It took a lot of time and research to compile all the information in one post. Glad that you liked it :-)
Thanks for listing the pros and cons in such a helpful way. I have never used layaway, and wasn’t aware of many of the pieces of info you shared. You did a lot of research! Thanks for sharing the information you found with the rest of us.
hey thanks Lisa, yes I have did a lot of research to provide only the authentic pieces of information to help people who want to know about Layaway.