Layaway a nice way to avoid credit cards
Growing up in my hometown, there was one big store in town, and that was Kmart. My parents were regulars there, and took advantage of the store’s layaway program, too.
Jessica Rivas shops for toys and gifts she'll put on layaway. Photo credit: Rana L. Cash, AJC
The idea of buy-now, pay-later took hold of consumers everywhere and layaway slowly fell by the wayside. Credit doomed the program, which allowed shoppers to store away items at the store with a small deposit and pay on it a little at a time. There was no interest payment, and you didn’t have to stare at a credit card bill a few weeks later that was out of your budget.
Well, layaway is back and many people are jumping back on board. Several retailers in metro Atlanta — Kmart, Burlington Coat Factory, AJ Wright, Sears, and Toys ‘R’ Us, among them — have layaway. The terms and conditions differ from store to store. Some require a $5 deposit, plus 10 or 15 percent of the total price. Some allow 30 days to pay in full, others up to eight weeks. One store, High Plains Western Wear in Marietta, gives shoppers 90 days to pay off the merchandise. They also have varying cancellation fees, and most are now closing the window on holiday purchases, requiring they be redeemed by early to mid-December. Kmart and Sears also allow shoppers to use online layaway.
No matter how you cut it, though, layaway is better than putting items on credit that you cannot afford. I visited several local stores in recent weeks and found shoppers like Jessica Rivas, who was stocking up on toys and gifts for her two toddlers.
Want to know more about how it works? Check out this video.
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20 comments Add your comment
Monday, November 16th @ RAW NEWS | Rodney Says | Rodney Anderson Blog
November 16th, 2009
10:38 am
[...] Layaway a nice way to avoid credit cards - AJC.com [...]
The Broke Socialite
November 16th, 2009
11:08 am
Layaway is a wonderful option; especially for those who have moved away from credit cards. I am LOVING the campaigns that the Sears family of stores have committed to this fall.
gil
November 16th, 2009
12:04 pm
I definitely use layaway, since I have not only paid off and canceled my credit cards, but will never use credit at a store ever again. There is also a site called e-layaway which is free and works with a few major retailers.
It is too bad, though that Wal Mart has discontinued it’s popular layaway plan.
David S
November 16th, 2009
1:01 pm
Just imagine how much better off we would all be if our government lived within its limits.
Rather than the Federal Reserve printing trillions out of thin air so the politicians can bribe their constituents with programs nobody can afford all so that our children and grandchildren will be little more than slaves to this debt for their entire lives, we might actually be able to have properity.
Its little wonder that few americans can live within their means with that sort of example being set at both local and federal levels.
But lets not forget that layaway is still just another reminder that you don’t save enough and that you a still living beyond your means. A store must essentially do the savings for you and thus have the money to pay its vendors for the product in advance of you finally paying off the item. We will finally know that our country is back on an appropriate track economically when everyone saves for what they want and lay away goes away again for lack of use.
Lynn
November 16th, 2009
1:09 pm
I too have also began using the layaway program at Kmart. If any one of importance is listening, can someone please tell Wal-Mart to bring back there layaway program.
bdp1975
November 16th, 2009
1:19 pm
Sears has a Great lay-a-way!! You can lay-a-way a flat screen tv and Blue ray player.!! and they will match prices from Best Buy also!! Best Buy need to have one and Walmart should bring back there law-a-way. The 70’s are back in the way of shopping!! Hello JCpenny And Macy’s please bring back your Lay-a-way!!….Oh ya Dillars too!!
mommie
November 16th, 2009
1:30 pm
Best Buy have a layaway, but, I don’t think its worth it.
Becky
November 16th, 2009
1:38 pm
@David S. some people also use layaway as a means to keep peeping eyes from seeing things that are not to be seen until Christmas..
Cammi317
November 16th, 2009
2:04 pm
I have never used it, mainly because of fear that I would forget to come back before the deadline and lose my down payment money. I try to pay “cash on the barrel” most days now. I am still paying for lousy credit decisions I made back in my early twenties and have no desire to back track.
David S
November 16th, 2009
2:19 pm
Becky. Certainly there are other reasons to use layaway (although I have always found that stashing with a neighbor works well too). The point is that this “service”, and it certainly is a service, is not without cost to the seller, and for the most part still reflects the lack of savings in our society and the chronic “must have” attitude among consumers.
It is the expectation that credit is an entitlement or that layaway can and should be available from everyone that shows how far we have come from a saver society that respects the property rights of the seller of goods and services.
Kat
November 16th, 2009
4:52 pm
David S. I agree with you in many aspects. I personally have never used layaway, but I can understand why people might do that. I think that some people might use it because taking a little bit out at a time (similar to adding to a Christmas Club account) is less painful than a big bill in January or perhaps those same people save up during the summer for other things – such as a vacation or something. I truly feel that the focus needs to be off things, but even a few things can be difficult for some. Perhaps we shouldn’t harp on those who choose this method, which is a much preferred method to the buy now/pay later antics of many of our friends and family. Let’s, at least, try to encourage people that this is an option. Even if I would never do it, because there is a service charge. And, heaven forbid, your stuff is accidentally misplaced when you go to get it. Ugh!
Tonya
November 16th, 2009
5:49 pm
David S., layaway was very common for many years in this country, even at a time when saving was at an all-time high. Before credit was prevalent, this was the way many shopkeepers did business. Layaway is often used for necessities like clothes and appliances, not just ‘wants’. This is just another form of savings, no different from a Christmas Club or Emergency Fund.
Geesh. Get over yourself.
Rita
November 16th, 2009
8:40 pm
I agree with David S. It is understandable why many retailers have brought back layaway due to the economy.
However, from a retailers standpoint, layaway is a nightmare. The store has to find a separate storage area for layway merchandise. The customer often forgets the merchandise, the payment due date and then argues about the fines imposed, etc, etc, etc… Could go on and on about the fiasco layaways can cause between the retailer and the consumer!
Rest assured when the economy improves layaway will vanish yet again! So like David S states, customers just need to learn to save and not buy what they cannot afford to take home that shopping trip!
Rita
November 16th, 2009
8:57 pm
An interesting point that consumers might want to be aware of that the majority of the stores listed in this piece are not doing well financially. This is not to say that you should be concerned about them going under right away, but it just means that these particular retailers are going to desperate measures to get your business. Would also caution that you may not get the best or lowest prices at these stores as well. Retailers detest layaway, so hard times for consumers and stores alike!
Pandora
November 17th, 2009
7:44 am
Lay Away is so much better than using credit cards. I wish all stores offered this. WalMart does not and they really need to start again. There is nothing wrong with using it. It’s smart to use lay away. Credit Card companies are nothing but lone sharks! They will bleed you dry. You will end up paying $100 for a $5 charge if your balance isn’t zero and you only pay the min. due. They are a rip-off and I’m moving totally away from them!
Bob Wood
November 17th, 2009
2:09 pm
I use layaway. It makes it easier to buy something and be able to get it before the item sells out. Walmart did away with their layaway. They should reconsider. The economy is bad. Layaway helps people to purchase what they need and want. Hard to save money and purchase later. More retailers should go to layaway!
Frugal
November 17th, 2009
10:23 pm
David S what you fail to realize is many people live below the poverty level and can’t afford to give thier child a nice Christmas. Lay-a-way is a great way for them to get thier child something even it’s just a couple of low priced items. Everyone who celebrates Christmas should be able to provide a gift for thier child.
By the way when your income is only about a $1000 a month and your rent is $500 a month half of your pay is already gone. So you try to raise a family off of that and save also. You should volunteer with us from time to time because you obviously need a wake up call.
Frugal
November 17th, 2009
10:30 pm
In Wal-Mart’s quest to compete with Target they and abandoned their primary customer base that made them so popular. I love shopping at Wal-Mart but they need to remember that the economy is bad and it’s their primary customer base who is suffering the most. But if they want to lose customers to K-Mart and Sears then I’m sure those stores would not mind.
Smith
November 18th, 2009
3:24 pm
David S, Let me say this to you. I’m in my forties , and can tell you that layaway has been around since the seventies(and even before then), it is nothing new. I remember me and my brother asking my mom for things we wanted for Chistmas. She would put everything on layaway during the summer, and have it under our tree by christmas. Layaway has nothing to do with the government. It has always been a way for people who did not make much money to give their kids a nice christmas. My Mother used it all of the time because she could not afford to buy things that me and my brother wanted all at once. It’s okay if you don’t agree with the government, but you should see layaway for what it really is, and stop trying to equate it with what the government is doing. I’m married and have used layaway when walmart had layaway. Layaway is not a bad thing, it is really a good way to help people in this economy.
Smith
November 18th, 2009
3:42 pm
The other good aspect of using layaway that I forgot to mention, is that it is payed for by cash, not credit. Meaning that once you make the last payment on your layaway, it is “paid for in full”. You will not get a bill in the mail for any further payments. You will not be charged any interest payments, or any other fees for using it. It is a straight cash transaction, meaning that what you bought, you own in full.