It’s time to start thinking about Christmas already and how you plan on paying for all the gifts you want to purchase this holiday season. Due to tough economic times for retail stores as well as families, several stores all around the country are offering layaway options this year in hopes of boosting their holiday retail season. Many stores did away with their layaway program because they started to carry in store credit cards. Since nobody has the money to pay for a credit card, fewer people were applying for them, forcing retail stores to do something better to create sale this year.
For some stores such as Wal-Mart, this is the first time since 2005 that layaway is being offered. Of course, not everything can be put on layaway. Wal-Mart is only allowing electronics, jewelry, and toys between October 17th, and December 24th. Other major retailers such as K-Mart, Sears, TJ Maxx, and Toys-R-Us are also offering or extending the items that can be put on layaway.
Many are saying that without layaway, there would be no Christmas for their families, especially for those in Oregon, whose unemployment rate sits as high as 9.1%. Many people have recently found out about easy credit the hard way and don’t like the idea of being tricked into getting an in store credit card just for a one time offer of 10% of their total purchase. Layaway is the easier option for both retailers as well as shoppers because a continuous money flow can be had and shoppers don’t have to lie it all down at once which many feel breaks their bank.
There is a downside to layaway as well. There are usually fees associated with putting items on layaway and there is a fee to cancel your order if you choose. Many layaway programs also have certain stipulations attached such as what you can put on layaway. A minimum down payment is also required that is usually based on the overall total of your layaway purchase. By choosing to use layaway, not only are shoppers able to lock in a great sale item, but they are also forced to think about their spending and what it is actually costing them.