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There are customers who always find the perfect item, but it doesn’t quite fit their budget right then. That’s where layaway comes in!
Layaway allows you to reserve an item in a store by depositing. You’ll then make regular payments over a set period until the item is paid off in full. Once it’s paid for, you can take your new treasure home! But like anything, layaway has advantages and disadvantages to consider before deciding if it’s the right option for you.
What is layaway? Or what does layaway mean?
A layaway is a budgeting tool disguised as a payment plan. Here’s how it works: you put down a deposit on an item to reserve it, like setting something aside. Then, you make regular payments until the balance is paid in full. Once everything is settled, you get to take your purchase home!
This option is particularly helpful for folks on a tight budget or with limited credit access. Unlike credit cards that rack up interest, layaway doesn’t involve debt and keeps your credit score squeaky clean. Think of it as a way to pay for something over time, without hidden fees or the risk of spiraling interest. That 2018 NerdWallet survey highlighting people struggling with credit card debt? Layaway can help avoid that situation entirely.
The history of layaway
Layaway’s journey goes back quite a ways, all the way to the tough times of the 1920s and the Great Depression. With many people struggling financially, stores offered layaway to manage purchases.
Layaway remained a popular option for decades but then came the 1980s and the rise of credit cards. Suddenly, people could swipe and take things home immediately, leading to a decline in layaway use. Fast-forward to the late 2000s and the Great Recession. With credit tightening up again, layaway re-emerged as a helpful tool for budget-conscious shoppers.
The Great Depression from the late 1920s to the early 1930s
Let’s talk about layaway’s roots! It all started during a tough economic period called the Great Depression, which lasted roughly from the late 1920s to the early 1930s. Imagine this: unemployment skyrocketed, making it hard for folks to afford everyday necessities, let alone bigger purchases. With cash tight, stores came up with layaway as a solution. Customers could put a small amount down on an item, reserve it, and then make payments over time until it was paid in full.
Layaway became a popular way to manage finances during this challenging time and remained a go-to option for decades. However, with the rise of credit cards in the 1980s and 1990s, people opted for the convenience of swiping and taking things home right away. Layaway use started to decline, but as you’ll see, it wasn’t completely gone!
The Great Depression during the late 2000s
Remember the Great Depression? That brutal economic downturn in the early 1900s? Well, layaway was born out of that hardship. People just didn’t have the cash for big purchases. Fast-forward to the late 2000s, and we faced another doozy—the Great Recession. Just like during the Depression, credit became scarce. People struggled to pay off old debts, and banks were wary of handing out new loans.
Stores, desperate to keep sales afloat, saw layaway as a lifeline for budget-conscious shoppers. It turns out that even in the 21st century, there’s a place for this old-school payment plan. Believe it or not, a 2021 survey by paysafe.com showed that a third of shoppers still planned to use layaway during the holidays! Layaway might not be for everyone, but for those looking to manage their spending, it’s a strategy that’s stood the test of time.
How does layaway work?
Layaway programs follow these five steps:
Step 1: Select the item
The first step is all about finding that perfect treasure. Whether browsing in-store or scrolling online, pick out the item that makes your heart sing. But remember, not everything qualifies for layaway.
Stores usually have a list of eligible items, so watch for that. Once you’ve found your match, head to the layaway department – they’ll guide you through the rest of the process.
Step 2: Make a deposit
Spotted that must-have item and it’s definitely layaway-friendly? Great! Now comes the securing part. Most stores require a deposit to lock in your chosen item. Think of it like a down payment to hold your place in line for that special something.
The amount can vary depending on the store. Some have a set percentage of the total price, while others let you choose a reasonable amount. To simplify things, you can usually pay your deposit at the counter with cash or through the store’s payment system.
Step 3: Pay the remaining amounts
Alright, so you’ve found your treasure and secured it with a deposit. Now comes the fun part – figuring out how you’ll pay it off! Here’s where things get personalized. Stores typically offer different payment plans based on the item’s price and your financial situation.
You might see options for weekly, bi-monthly (every two months), or monthly payments. The key here is to choose a plan that fits your budget comfortably. Remember, sticking to your payment schedule is crucial. Consistent payments ensure you don’t miss out on your item and avoid potential fees.
Step 4: Get the items
You’ve picked your perfect item, secured it with a deposit, and followed your payment plan religiously. Now comes the rewarding part – claiming your prize! Once those final payments are made and your balance hits zero, the item is all yours. Remember that some stores may have a small layaway fee to cover the cost of storing your item during the payment period.
But this is usually a flat rate, so you won’t be surprised by hidden charges. With everything settled, you can leave the store with your purchase, knowing you budgeted wisely and got what you wanted without going into debt. Now, that’s the beauty of layaway!
Pros and cons of layaway
Layaway can be a lifesaver, but it’s not a one-size-fits-all solution. Here’s a breakdown to help you decide if it’s the right fit for you.
Pros
Zero interest
Unlike credit cards that hit you with sky-high interest rates, layaway keeps things refreshingly simple. You pay the set price for the item, plus any fees, and that’s it. There are no hidden costs and no interest building up over time. That makes layaway a much more budget-friendly option compared to credit cards with their rates that can range anywhere from 15% to a whopping 25% or more!
Stores typically charge a small flat fee to cover the cost of holding onto your item while you make payments. But this is a one-time charge, not an ongoing interest expense. Think about it – a 2018 survey by Splitit showed that over a third of US shoppers would be more likely to buy online if they could avoid interest on installment plans.
That’s a lot of people who appreciate the power of interest-free buying! And guess what? Almost half of those surveyed said zero interest was the most important factor when choosing an installment plan. Layaway delivers on that promise, making it a smart way to manage your budget and get what you want without getting tangled up in debt.
Easy acceptance criteria
Layaway shines when it comes to accessibility. Unlike some financing options, there’s no need to jump through hoops to qualify. Forget credit checks! Layaway plans typically only require identification to prove who you are and a deposit to secure your chosen item. This makes it a great option for folks with bad credit or no credit history.
So, if you’ve been shut out of traditional financing or want to avoid credit card debt, layaway offers a welcoming alternative. It lets you purchase without worrying about credit score approvals or getting stuck in a cycle of interest charges.
Available online
Layaway isn’t stuck in the past! Did you know some stores offer it online too? That’s right, you can ditch the long lines and store hopping to find the perfect item. Online layaway lets you snag what you want with scheduled deductions straight from your checking account. Plus, when your payments are complete, you can choose in-store pickup for convenience.
This online option benefits both stores and shoppers. Online layaway is a win-win by eliminating the need for storage space in stores and simplifying bookkeeping. Instead of cluttering up valuable retail space, your item can wait safely at the distribution center until you finish your payments. So, layaway can be a smart way to spread your costs and avoid credit card debt, whether you prefer shopping in-store or online.
Cons
Fees
Layaway might be a budgeting superhero, but it has weaknesses. Let’s talk about fees. While you score a win by avoiding interest charges, most stores tack on some additional costs besides the deposit. These can be service fees, cancellation fees, or restocking fees, and they can range from a few bucks to as high as $100, depending on the store. So, layaway might not be the best fit for a tiny purchase where the fees could consume much of your savings.
Here’s another thing to remember: if you change your heart and decide to cancel the layaway plan, you might lose those fees you already paid. So, be sure you’re truly committed to the item before diving in. Remember, responsible budgeting is key with layaway too!
Strict payment terms
Layaway is all about responsibility, including sticking to your payment schedule. Unlike credit cards that give you a little leeway, layaway plans have set payment terms. Miss those deadlines, and you could risk losing the item you set your sights on.
Also, some stores might charge you a cancellation fee on top of losing your deposit. So, before jumping into layaway, be sure you can realistically make those payments on time to avoid any unnecessary headaches or lost cash.
Potential losses
Let’s discuss potential pitfalls with layaway. The good news is that you won’t lose the money you put towards the item if you don’t complete the agreement. However, there can be some additional costs to consider.
Most stores will charge a cancellation fee if you decide to back out. This covers the administrative hassle of taking the item off layaway and returning it to inventory. Some stores might also add a restocking fee. Think of it as a way to compensate them for having to put the item back on the shelf and make it sales-ready again.
The key takeaway? Layaway is a great budgeting tool, but be sure you’re committed to the purchase before diving in. Factor in any potential fees on top of the deposit and payment amounts to ensure they work for your budget. Remember, responsible planning is key to getting the most out of layaway!
Not available for every purchase
Layaway isn’t a one-size-fits-all solution, and that includes what you can buy. Stores often have restrictions on what qualifies for layaway. This makes sense. Consider it; the fees involved wouldn’t make sense for a tiny purchase. So, while you might be eyeing that new gadget, it might not be available on layaway.
Here’s another thing to consider: selection. Stores will typically limit the items you can purchase with layaway. They might exclude certain categories or brands altogether. The best approach is to ask the store about their layaway policy and what items are eligible. That way, you can avoid surprises and ensure the item you love can be yours through the power of layaway!
Layaway vs. credit cards
Layaway and credit cards are popular options for shoppers looking to spread the purchase cost. While both allow you to pay over time, they differ significantly in how they work and their impact on your wallet. Understanding these differences is crucial to choosing the right method for your needs.
Similarities
Layaway and credit cards might seem opposites, but they share some key features. Both are designed to help you acquire an item you can’t pay upfront. With either option, you’ll spread out your payments over a set timeframe.
And, missing payments on either plan will result in late fees or penalties. However, the way you pay and the ultimate control you have over the purchase differ significantly between the two.
Differences
Layaway
Layaway takes a completely different approach than credit cards. Here, you’re essentially pre-paying for the item in installments. You’ll make a down payment upfront, typically a percentage of the total cost. Then, you’ll continue making payments at regular intervals until the balance is paid off. Only then can you take the item home.
A layaway plan does not require a credit check, so your credit history doesn’t matter. This makes it a good option for people with limited or bad credit. However, there is a catch: layaway isn’t ideal for immediate purchases since you don’t get the item until you finish paying.
Another thing to consider is that failing on a layaway plan won’t hurt your credit score. However, depending on their policy, the store will likely charge a cancellation fee and may withhold some or all of your payments. So, while layaway protects your credit, it’s important to be sure you can commit to the payment plan before starting one.
Credit cards
Now, let’s talk about credit cards. This is where things get different. With a credit card, you can take the item home immediately, enjoy it now, and pay later. There’s no down payment required, which can be appealing.
However, there’s a big cost to consider: interest. Credit cards charge interest on your unpaid balance, which can add up quickly and significantly inflate the item’s original price. If you’re not careful, you can easily end up with credit card debt, which can be a major burden.
Credit card approval also depends on your credit history. Generally, you’ll need good credit to qualify for a card with favorable terms. Even with good credit, there may be annual fees or other charges associated with the card.
So, credit cards can be a good option if you can pay your balance in full each month. You’ll enjoy the perks like rewards programs and immediate access to your purchase. But, if you can’t afford the full payment upfront, the interest charges can outweigh the benefits. In that case, layaway might be a better choice to avoid getting stuck in a cycle of debt.
Top stores that offer a layaway program
Nowadays, many large retail stores still offer layaway programs as a way for customers to conveniently pay for their purchases over time. Here are the top stores that currently offer layaway programs:
1. Buckle
Buckle is a haven for trendy clothes, shoes, and accessories, and guess what? They offer layaway! Here’s the deal:
With Buckle’s layaway program, you can snag that perfect outfit by putting down a minimum 20% deposit. Think of it as securing your spot in line for that must-have item. The best part? Buckle doesn’t charge any service fees for layaway.
Once you deposit, the item will be held at your local Buckle store until you finish paying it off. You’ll have 60 days to complete your payments in full. That gives you ample time to spread out the cost and avoid credit card debt.
So, if you’ve been eyeing a new Buckle look but want to manage your budget, their layaway program might be the perfect solution! Check with your local store to confirm their specific layaway terms and selection.
2. Big Lots
Layaway shopper on the lookout for deals? Big Lots might be your treasure trove! This discount retailer offers layaway on furniture in select locations. Here’s a quick rundown:
Snag that perfect sofa or comfy mattress with layaway! Big Lots typically require a 10% deposit to secure your furniture. Like other stores, this holds the item until you finish your payments.
The good news is Big Lots doesn’t charge any service fees for layaway. However, some stores have a 5% cancellation fee in case you change your mind halfway through. So, check with your local Big Lots to confirm their specific layaway terms and fees.
While Big Lots might not offer layaway for everything on your shopping list, it can be a great option for snagging furniture finds without breaking the bank. Check store availability and choose a payment plan that fits your budget.
3. Kmart
Layaway is alive and well at many Kmart locations, and it can be a great way to manage your budget for those bigger ticket items. Here’s the breakdown:
First, Kmart offers layaway for select items – not everything in the store qualifies. But the good news is you can browse online, in-store, or through their app to see what treasures await. Once you find that must-have item, you can choose between two layaway plans: eight or twelve weeks.
The eight-week plan is perfect if you want to pay things off quickly. This option has a $5 service fee; if you cancel halfway through, the fee is $10. The twelve-week plan comes with a $10 service fee and a $20 cancellation fee for those needing more breathing room.
Remember, these fees are on top of your initial deposit, so be sure to factor those into your budget when choosing a plan. It’s always a good idea to check with your local Kmart to confirm their specific layaway terms and selection of eligible items. But with a little planning, Kmart layaway can be a smart way to spread out the cost of that new appliance or that perfect piece of furniture.
4. Baby Depot
Baby Depot can be your saving grace when budgeting for your little one’s essentials. They offer a 30-day layaway program, perfect for spreading out the cost of cribs, car seats, clothes, and more.
Here’s the scoop on Baby Depot layaway:
First, you’ll need to deposit to secure your chosen baby gear. The minimum deposit can be a flat $10 or 20% of the item’s price, whichever is higher. This ensures your item gets tucked away until you finish your payments.
There are a couple of fees to consider. Baby Depot charges a one-time $5 service fee for using layaway. In addition, there’s a $10 cancellation fee if you cancel the plan before paying it off.
So, consider the deposit and fees when budgeting for layaway purchases. Remember to check with your local Baby Depot to confirm their specific layaway terms and selection of eligible items. With a little planning, Baby Depot layaway can be a budget-friendly way to shower your little one with love (and all the gear they need) without breaking the bank!
5. Sears
Sears offers two layaway plans: an 8-week plan for smaller purchases under $300 and a 12-week plan for higher-priced items. Both plans require a 10% deposit and a service fee ($5 for the 8-week plan and $10 for the 12-week plan).
If you’re shopping online, you can choose a store location for pickup at your convenience once you have finished your payments. This is similar to the “click-and-collect” option many stores offer. Some stores might even allow you to schedule a delivery for an additional fee.
6. Burlington (formerly Burlington Coat Factory)
Layaway is alive and kicking at Burlington, and it can be a lifesaver for snagging those amazing deals on their ever-changing stock. Here’s the lowdown on how it works:
First things first, Burlington’s layaway is for in-store purchases only. So grab your shopping bags and get ready to browse! Just keep in mind that not everything qualifies. Food items and home decor like wall art, rugs, lamps, and furniture are excluded from layaway.
You’ll need to deposit to secure your finds. Burlington keeps it simple with a minimum deposit of $10 or 20% of the item’s price, whichever is higher. This ensures your treasures are set aside until you finish paying them off.
Here’s where budgeting comes in. You’ll have 30 days to pay for your layaway items in full. You can make multiple installments throughout that period or pay it off all at once. Remember that the full amount must be settled by the layaway expiration date.
There are a couple of fees to factor in. Burlington charges a one-time $5 service fee for using layaway. Additionally, if you cancel the plan before paying it off, there’s a $10 cancellation fee.
So, before you dive in, be sure to crunch the numbers and consider the deposit and fees on top of your purchase price. If you’re a savvy shopper looking to stretch your budget at Burlington, layaway can be a great way to snag those must-have items without breaking the bank. For more information, check out Burlington’s layaway policy for the latest details.
7. Hallmark Gold Crown
Looking to spread out the cost of those adorable greeting cards, ornaments, or special keepsakes? Hallmark’s Gold Crown program might be the perfect solution. Here’s the need-to-know for using layaway at Hallmark:
First, remember that Hallmark’s layaway program, Gold Crown, is only available in-store. So head to your local Hallmark and browse all the treasures they offer!
To secure your finds with Gold Crown, you’ll need to deposit 20%. This ensures your chosen items are tucked away until you finish your payments.
Here’s the beauty of Hallmark layaway: you’ll have a generous 90 days to pay off your purchases in full. This gives you ample time to spread the cost and avoid straining your budget.
One thing to remember is that Hallmark Gold Crown’s service fees can vary. Before committing to a layaway plan, it’s always best to check with your local store for their specific fees.
For even more details, ask a store associate about Hallmark’s layaway policy. They’ll happily answer your questions and ensure a smooth layaway experience.
8. American Freight
American Freight can be your friend when budgeting for bigger ticket items. They offer a layaway program to help you spread the cost over time. Here’s the need-to-know:
First, American Freight’s layaway is for in-store purchases only. So, get ready to browse their selection of furniture, appliances, and mattresses! The deposit amount depends on the total cost of your purchase. The store will give you the details at the time of purchase.
This layaway plan is designed for long-term budgeting. You’ll make regular payments of at least $10 every two weeks. The good news is you have up to 24 months to pay off your layaway agreement in full. This gives you plenty of flexibility to manage your budget comfortably.
One important detail to remember: service fees can vary at American Freight. Be sure to ask a salesperson for the exact fees associated with your layaway purchase before you commit. They can also provide more information about American Freight’s layaway policy to answer any questions. With a little planning, American Freight layaway can be a great way to snag that perfect furniture set or new appliance without breaking the bank!
9. Jewelry Exchange
Jewelry Exchange offers a layaway program to help you sparkle and shine without straining your budget. Here’s the scoop on how it works:
The beauty of Jewelry Exchange layaway is its flexibility. You can secure that perfect necklace or dazzling ring either in-store or online! To get started, you’ll need to put down a 25% deposit of the purchase price. This reserves your chosen treasure until you finish paying it off.
The payment schedule is straightforward. You’ll have 6 months to complete your layaway agreement in full. Payments are due every 30 days from the date of purchase, so be sure to factor that into your budgeting.
One thing to remember is that Jewelry Exchange doesn’t explicitly mention any service fees associated with layaway. However, their policy states that if you miss payments for 90 days, your item will go back on the shelf and you’ll receive a store credit for all the payments you’ve made so far.
For the latest details and questions, it’s always a good idea to check with your local Jewelry Exchange store or browse their website for layaway policy. With a little planning, Jewelry Exchange layaway can be a smart way to spread out the cost of that special piece of jewelry and make your sparkle dreams a reality!
10. Shane Co.
Shane Co. offers a layaway program to help you achieve your jewelry dreams without breaking the bank. Here’s a breakdown of how it works:
The great thing about Shane Co. layaway is its reach – you can secure that perfect piece online or by visiting in-store! To get started, you’ll need to put down a 20% deposit on the purchase price. This ensures your chosen treasure is held for you until you finish your payments.
Here’s where Shane Co. shines: they offer flexible payment options. You can choose a plan that best suits your budget, with terms ranging from two to twelve months. This translates to either one payment per month for two months or spreading it out with two payments monthly for six months. The best part? You won’t receive your sparkling new piece until the final payment is complete, preventing impulse purchases.
And the news gets even better! Shane Co. doesn’t charge any service fees for using their layaway program. Plus, if your plans change, they offer a 100% refundable and returnable policy on your deposit.
To ensure a smooth layaway experience, it’s always a good idea to check out Shane Co.’s layaway policy on their website or ask a store associate for more details. With a little planning, Shane Co. layaway can be a fantastic option to spread out the cost of that special piece of jewelry, letting you celebrate your sparkle moments without stressing your wallet.
11. Day’s Jewelers
Day’s Jewelers offers a layaway program that can be a budget-friendly way to achieve your jewelry goals. Here’s a breakdown of what you need to know:
The beauty of Day’s Jewelers layaway is its accessibility. You can browse their selection and secure that perfect piece online or in-store! To get started, you’ll need to put down a 10% deposit of the purchase price. This ensures your treasure is set aside until you finish paying it off.
Here’s where budgeting comes in: The payment schedule requires you to pay at least 10% of the total monthly purchase amount. So, the faster you pay, the sooner you can wear your new jewelry!
There are a couple of things to consider regarding fees. Day’s Jewelers doesn’t mention any service fees for layaway itself. However, a cancellation fee applies if you cancel your layaway plan thirty days after starting it. They will keep 20% of your total deposits as a restocking fee.
If you change your mind about the original item, the full deposit can be applied to a new purchase immediately.
For the latest details and any questions, it’s always a good idea to check with your local Day’s Jewelers store or browse their website for their layaway policy. With a little planning, Day’s Jewelers layaway can be a smart strategy to spread out the cost of that special piece of jewelry, letting you shine without financial strain.
12. Get it Now!
Get it Now! offers a layaway program to help you snag that must-have item while spreading the cost over a manageable timeframe. Here’s the deal:
First, Get it Now! layaway is for in-store purchases only. So, get ready to browse their selection and find that hidden treasure! The deposit amount you put down depends on the total cost of your purchase. The store will give you the details at the time of purchase.
Here’s the key—with Get it Now! You’ll need to clear your layaway balance within 90 days. Budgeting is crucial to ensure you can pay off your item before the deadline.
One fee to factor in is a $25 restocking fee if you cancel your layaway plan. So, be sure you’re truly committed to the purchase before diving in.
For more details, ask a store associate about Get it Now!’s layaway policy. They’ll happily answer your questions and ensure a smooth layaway experience. Remember, with some planning, Get it Now! layaway can be a great way to satisfy your shopping urges without breaking the bank! Just be mindful of the deadline to avoid any cancellation fees.
13. Reeds Jewelers
Reeds Jewelers offers a layaway program to help you secure that perfect piece without blowing your budget in one go. Here’s how it works:
First, Reeds Jewelers’ layaway is for in-store purchases only. So, head to your nearest store and browse their sparkling selection! To get started, you’ll need to put down a deposit. It’s either 10% of the purchase price or $25, whichever is greater. This ensures your treasure gets tucked away until you finish paying it off.
Now, here’s where budgeting comes in. Your payment schedule is designed to be manageable. You’ll make monthly payments of either 1/6th of the remaining balance on your item or $25, whichever amount is higher. This gives you some flexibility while still ensuring steady progress towards your goal.
The good news is that you’ll have up to 6 months to pay off your layaway agreement in full, as long as you keep up with your regular payments. This allows you to spread out the cost comfortably.
While Reeds Jewelers doesn’t explicitly mention any service fees, it’s always a good idea to check with the store directly for their latest layaway policy details. They can answer any questions and ensure a smooth layaway experience. With a little planning, Reeds Jewelers layaway can be a smart way to spread out the cost of that special piece of jewelry and celebrate your sparkle moment without financial strain.
Other places that do layaway
In some states across the country, there are a handful of other retail stores that offer layaway programs. This means that if you live close to one of these stores, you might have the option to buy items through a layaway program, allowing you to make a purchase by paying in installments.
Here are a few more stores that are known to offer layaway programs:
- DFW Furniture Warehouse (California)
- Choice Furniture & Mattress (Illinois)
- Kings Furniture Warehouse (New York)
- The Furniture Shop (Texas)
- Best Buy Furniture (Pennsylvania and New Jersey)
Is layaway a loan?
Unlike a loan, layaway doesn’t add interest to the remaining balance. You pay what the item is priced at, without any additional fees tacked on for delaying payment. You also don’t get to enjoy your purchase right away. With layaway, you pay in installments until you’ve settled the entire amount. Then, and only then, can you take your treasure home. This differs from a loan, where you receive the item upfront and make payments over time.
While you dodge interest charges, layaway plans might come with service fees. These vary by store, so factor them into your budget when considering layaway.
Life happens, and sometimes payments get missed. With layaway, if you can’t complete the agreement, you might lose the deposit you put down. The store’s policy will determine what happens to your payments and the item itself.
Does layaway build credit?
Layaway keeps your credit score out of the picture entirely. Since you’re essentially pre-paying for the item in installments, there’s no need for the store to extend your credit. This means you won’t have to go through a credit check or application process, and your layaway activity won’t be reported to credit bureaus.
The benefit is that using layaway won’t affect your credit score in any way, good or bad. On the one hand, your on-time payments won’t build your credit history. But on the other hand, missing a payment won’t hurt your score.
What happens if you stop paying layaway?
Stopping payments on a layaway can mean losing some of the money you’ve already put down. While some stores may offer a partial refund on your payments, most will deduct a cancellation fee from the total amount you paid. This fee covers the administrative costs of processing the layaway and taking the item off the shelf for you.
Additionally, any service fees associated with setting up the layaway plan are typically non-refundable. In essence, you’ll forfeit those fees for the time the store held the item for you.
The worst-case scenario is that the store keeps your payments entirely. This is less common, but some stores have stricter cancellation policies, especially for high-demand items. Before entering a layaway agreement, read the store’s cancellation policy carefully to understand exactly what happens if you stop paying.
The bottom line
Layaway might seem like a relic of the past, but it’s still a viable option for many shoppers, especially those who want to avoid credit card debt. This guide has hopefully answered some key questions: what layaway is, how it works, and the pros and cons to consider. This information lets you decide if a layaway plan fits your next purchase.
While other payment methods have become popular, layaway remains relevant in today’s retail landscape. Its unique advantages, like budgeting for a purchase without accruing interest, continue to resonate with certain customers.