Considering a Layaway Purchase? Read This “With so many Americans still struggling financially and reeling under credit-card debt, layaway is likely to be an even more attractive alternative to pay for gifts this holiday season. If you’re unfamiliar with the layaway process, here’s how it works.” [Consumer Reports Money]


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  1. Kamidari says:

    I don’t get the appeal of this at all… Why not just wait 30-90 days and buy the thing, minus the fees. At least buying on credit, you get the item now.

  2. kewlfocus says:

    Seriously, just learn to save. Oh wait, forgot, this is America. We LOVE paying fees for NOTHING.

  3. bohemian says:

    Back in the dark days of history when I was a poor student layaway was free. With all the service fees it isn’t quite the great deal it used to be.

    It used to be a useful tool if you really wanted to grab something before they were all gone but didn’t have all the money up front.

  4. unpolloloco says:

    Say you put a $100 item on layaway for 90 days and pay a $10 service charge, or 10% of the cost. This is the equivalent of paying 40% interest on the item. Instead, you use a credit card at 20% interst to pay for the $100 item and pay it off in 90 days. Total interest charges = $5. The break even point is $200. It’s more if your interest rate is less.

    Moral: unless it’s something that’s really expensive or you can’t trust yourself to pay off the balance on your credit card, it’s a better deal to pay with plastic.