Think layaway was just something your grandma used to do? Wrong! Major retailers such as Walmart, Kmart and Sears are expecting huge growth in the popularity of their layaway programs this holiday season.
As consumers continue to struggle through tough economic times, many shoppers have no access to credit but still want the option to pay over time and have a payment schedule. Layaway programs fit this need, generally offering payment plans that range from just 4 to 12 weeks with no interest.
The problem with layaway plans is that they have up front fees. Most plans not only cost $5 to $10 to set up, but they also have cancellation fees of up to $30 if you change your mind and don't want the item anymore.
If you don't have the cash to purchase a particular gift this season, the best choice is to simply not purchase it until you've saved the money first. Of course, many 0% interest credit cards have no annual fees and no interest for up to 21 months, so they can act as your own free layaway plan if absolutely needed. Just make sure you devise a clear payment plan and then stick to it to make sure your balance is completely paid off well before the 0 interest promotional period ends.
