If you want to avoid using your credit cards, you may want to consider using a layaway program to save what you need to complete a purchase. Layaway usually works best for large purchases when you factor in the store fees. Be sure you will be able to make your regular payments and pay off your layaway contract in time. It isn’t for everyone, but it can be an effective way to save for large purchases without breaking out the plastic.
Terms and conditions vary between stores and sometimes different states have different rules. Be sure and understand the terms before you begin.
Here are some important questions to ask:
- Is there a fee to open an account?
- Are there minimum spending requirements?
- What is the required down payment?
- When are payments due?
- Can you make payments online?
- How long can the item be on layaway?
- Will the items be set aside for me until all payments are made?
- What happens if the product is not in stock?
- What it the price drops while you’re making payments?
- If your layaway is canceled, is there a fee?
- How are my payments refunded if the contract is canceled?
Have we missed any? Please let us know in the comments, we value your input.