October 16, 2009
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News: Layaway Plans; A Great Alternative To CC
Scary but true, it's that time of year again. We all love it; and we all dread. The Holidays are filled with joy and celebration, but for many Americans, there exists the underlying stress from worry. The sudden crash on Wall Street last year, rising unemployment, and credit availability issues have driven many individuals to cut back on credit card spending. Credit card companies have slashed credit limits, closed accounts, and raised interest rates and fees to unmanageable limits. However, a few retailers are reaching out to credit card customers in helping them find alternatives to piling up debt. They have reintroduced that once popular "layaway" plan.
Some of you may not be old enough to remember the layaway plan, but for those of us who do, it was an exciting adventure. The program was a great alternative for young adults who didn't yet qualify for a credit card, or the more mature customers like my parents and grandparents who didn't believe in charging. Unlike a credit card purchase where you bring your product home immediately, the layaway plan allows consumers to play over a designated time period how much they can afford to pay each week toward the purchase of an item. The store typically requires a small down payment to pull the product off the sales floor and hold it in storage. The adventure entailed a visit to the store each week to make a payment toward the purchase which continued until the item was completely paid for. Layaway plans have a limited time frame, generally 90 days or less.
Several stores are offering the layaway plan this Holiday Season to meet the needs of Americans during these difficult economic conditions. They include Kmart, Sears, TJ Maxx, Marshalls, and Burlington Coat Factory. Of course, most charge a small service fee to participate in the program and an additional cancellation fee if the customer changes his minds on making the purchase. If you are one of those individuals who are trying to keep credit card spending to a minimum, you will certainly want to check out the layaway program at one of these retailers. Many local businesses also offer the program. It is best to inquire at your favorite shopping place as new retailers are being added to the list on a regular basis.