With layaway making a comeback, I would like to offer some tips regarding layaway in retail stores this holiday season. It is still best to pay for items with cash, but if you don’t have the cash then layaway is a better option than credit.
Here are some things to look for:
- Read the fine print. Make sure you know all the terms of the agreement.
- Look for fees. Most retailers charge some fees. There may be a fee for the layaway and then another fee if you cancel.
- Find out what happens if the item goes on sale later. Sometimes it is better to wait for the sale if the retailer will not match the sale price.
- Be sure that you can afford the item you are placing on layaway.
- Know when the payments are due on the layaway. If you don’t make the monthly or weekly payments, you may lose the merchandise.
- Look for conveniences, like being able to pay online.
Editor's Note: Lynette Baker is the spokeswoman for RethinkingDebt.org, a nonprofit organization that offers financial and credit counseling with offices in Hauppauge.
