I don’t know about the rest of the world but for me, growing up with layaway during the holiday season was the way to go. You name it: toys, electronics, bedding, and even Christmas décor! If it wasn’t perishable, it was going in layaway.
However, during the 1990’s, credit cards became all the rage causing layaways to become “démodé,” out of style.
With an unstable global economy coupled with a rapidly approaching holiday season, many cash strapped and credit ruined customers are uncomfortable with adding fresh new balances to their credit card bill.
Furthermore, regardless of your income status, why not appropriately plan your Christmas shopping and avoid credit card interest charges?
Makes sense to me and to major retailers as well!
Just as a reminder, consumer expert Regina Lewis explains how layaway works,
“Generally, the model works like this: You put 10 percent to 20 percent down on the item, so on a $100 item, that is 10 bucks. Then you sign up for a payment schedule — usually over 30 or 90 days.”
Lewis continues, “There is a one-time fee ($5 to $10) that covers their cost to take it off the floor, store it in the back. If you have to cancel at any point, a nominal charge, (such as $5 or $10). Not a ton of downside.”
However, if the thought of physically standing in line at Kmart makes you crazy (the lines will be long), try the website called elayaway.com.
elayaway.com offers over 1000 independent merchants who sell a variety of products that are available for layaway.
According to elayaway.com, “the intuitive calculator allows you to break down your order’s purchase price over 3 to 13 monthly payments.”
elayaway.com will automatically deduct the payments from your bank account and you will receive your order once it’s paid in full.
Let’s face it, the type of credit that was available pre-2008 may never return, so let’s focus on being satisfied with controlling our holiday finances.
So stop frontin’ and lock in those sale prices and calculate your biweekly payments.
Any financial plan that avoids Post-Christmas Credit Card shock in January 2013, Will always be in style!