Layaway Gifts this Holiday

I was talking with my mom the other day about how she could every afford holiday presents for a family with five kids on the earnings of a barber and a secretary.  Want to know what her secret was?  Layaway!

Never heard of layaway?  Here’s how it works…

You select the items you wish to purchase.  The retailer charges a fee to hold onto the items for you.  You pay a percentage of the total up front, and then set up a payment agreement for the remaining balance.  But be careful — if you don’t pay off the balance or make the payments when you have promised to make them, you could lose your merchandise and may not get all of your money back.  Of course, layaway rules vary from store to store, so make sure you understand all the rules BEFORE you make that initial payment.

Now, most retailers don’t have layaway…but some do.  Kmart’s website can help you find stores near you that offer layaway.  I’ve heard that some Burlington Coat Factory, Marshalls, and TJMaxx stores offer layaway, too.   But Wal-Mart — the biggest moneymaker this holiday season — does NOT have a layaway plan at this time.  Your best bet is to ask if there is a layaway plan available at the customer service desk of your retail store.

There are even online sites — like eLayaway, EZ- layaway, and Lay-Away.com — that offer layaway plans for online shoppers.  These and other online layaway companies charge you up front for the service, and the retailers that sell through these sites pay a monthly fee to be on the site.   The items may not be the best value, though, so research the prices before you commit. You will need an active bank account to use the sites, but you shouldn’t need a credit card.

In this day and age of the credit crisis and huge consumer debt, layaways can be a viable option.  Just make sure you do your homework before you pay anything.  Happy shopping!