Can’t Fully Pay? Put it on Layaway

Eyeballing that chic dress in the store window, but don’t have enough cash on hand to buy it? Maybe you need that new set of tools, but your checking account is hovering around its minimum? If the store you’re buying from offers a layaway plan, you might consider using it when you don’t have all the money you need to pay for something you’d like to buy.

Layaway plans allow you to make a deposit on an item you want, and recurring payments over time. Once you’ve made all the payments, you can take home the merchandise. A layaway plan is different from using a credit card, which allows you to pay for an item on credit, and take it home immediately.

To understand how layaway plans work, remember these key tips:

  • Check the store or company’s policy and find out the terms of the layaway plan. Ask: How much time do you have to pay for the merchandise or service? What are the refund and exchange policies for layaway items? When are payments due and what is the minimum payment? Are there additional charges or fees you might incur?
  • Get the terms of the layaway plan in writing. While it’s a great idea to ask a salesperson questions about a layaway plan, go a step further and ask for the plan policy and terms on paper. And never sign any agreement without fully understanding the all terms of the layaway plan first.

For more information, check out our shopping tips article.

 

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