Get the Goods You Want Without Going Into Debt
The holiday shopping season is quickly approaching, but unfortunately the hard hit from the strained economy has left many unable to afford purchasing high dollar items all at once.
The good news for shoppers struggling to pay pricey ticketed items this holiday season is to use a layaway payment option. Layaway plans at retail stores are making a comeback, but do they really benefit the consumer or is it just another way for retailers to boost their bottom line? The answer may lie in middle for both the consumer and the retailer.
The Benefits of Layaway:
Layaway enables shoppers to put an item on reserve and make payments on it until the item is paid in full. A small deposit is required for the item to be placed on hold for a specific period of time. The time period an item is held for varies from retailer to retailer, but typically a 60 day period is fairly common.
Once an item is put on layaway, the buyer makes regular periodic payments until the item is paid in full. Unlike credit cards, layaway programs neither charge interest, nor do they require a good credit score in order to participate.
The Downside of Layaway:
While layaway plans are convenient and affordable, they are not always free. Some stores charge a nominal fee when items are put on layaway, and may charge a fee if the buyer misses a payment or fails to pay off the merchandise on hold. In addition, a number of stores let buyers make their payments with a credit card, which isn’t always in the buyer’s best interest, particularly if a layaway fee also applies. The credit card interest and the layaway fee will make the item significantly more expensive than if the item were paid in full upon purchase.
Conclusion:
Overall, layaway payment plans are one way consumers can obtain merchandise without landing themselves into debt. As for retailers, they can also benefit by drawing in more traffic by offering a service that helps the financially strapped consumer.
