Layaway Makes a Comeback

Ever since the recession really started making inroads in the economy, there has been talk of layaway making a comeback . The talk is heating up again as back to school gets underway — and as people start thinking ahead to holiday shopping. (That’s right, Christmas is less than 5 months away .) For a while, retailers had gotten rid of layaway; credit cards made buying things easy. Besides, with the credit card, customers could take the item home immediately, without waiting for it to be entirely paid off.

Now, though, with many Americans rethinking credit card spending , and considering planning out their purchases, demand for layaway is returning. With layaway, there is no interest to pay. You make regular payments, and then, when the item is paid for, you get to bring it home. It’s a nice way to do things. It encourages customers to plan ahead to some extent, and to get in the habit of saving up the money before buying items.

Stores dislike layaway because it takes the item off the shelf and moves it to a back room where it takes up space. And then what happens if the customer changes his or her mind? It’s an item that could have been sold weeks ago, but wasn’t. But with the recession, retailers are realizing that customers are interested in layaway . And that’s not a bad thing.

Creating your own layaway plan

Of course, not all stores offer layaway; it may not be available at local stores and even some big box retailers. Dave at My Two Dollars points out that you can create your own layaway plan . It’s basically called saving up . He points out that if you plan ahead, you can plan to buy something ahead of time, putting “payments” into a savings account (or even a money jar). When you have enough to buy the item, you can go buy it.

Of course, the downside to this plan is that the item might no longer be available when you go to buy it with your saved funds. You can remedy this by having a regular “fun” savings account or plan that can be used to make spur of the moment purchases. Another way to look at it, though, is this: You went all that time without the item. Did you really need it anyway?

Image source: Daylife