More shoppers are using layaway for the holidays

Already doing your Christmas shopping? You’re not alone. But many people don’t have the money to pay for gifts now. The alternative is layaway.

Industry specialist note that early holiday shopping is a smart way to prepare for the season, and what better way to do that than using layaway plans. Layaway plans are a good idea, especially for customers who want to buy products without paying the full amount upfront and do not want to use a credit card. Many retail companies are now advertising layaway opportunities for their customers to help them plan for their holiday shopping.

When purchasing items on layaway, the buyer must typically make a down payment of 10 to 20 percent and pay any service or plan fees for the store to hold the item for them. The customer then has typically 30 to 60 days to make periodic payments to pay off the balance. Once it is paid off, the customer can take the items home.

Layaway services can be a great alternative to using a credit card. However, it’s extremely important that customers take note of the fine print and know what to expect.

Online Layaway Layaway purchase plans are not limited to brickand-mortar retail outlets; some online merchants use them, as well. Some layaway sites operate like a combination shopping search engine and online shopping mart: The companies have hundreds of merchants and online retailers selling name brand items.

First, you select a product. Then, you pay: some sites require electronic debiting from your checking account; others require that you pay by check or money order through postal mail. Still others allow you to pay with credit or debit cards, or use online payment services. Once you’ve paid the balance, the online layaway service pays the merchant, and the merchant sends you the product.

When buying items on layaway, Better Business Bureau advises consumers to get everything in writing and offers the follow- ing checklist of questions to ask:

How much time do I have to pay off the item?

When are the payments due?

How much do I have to put down?

Are there any storage or service plan fees?

What happens if I miss a payment? Are there penalties? Does the item return to inventory?

Can I get a refund or store credit if I no longer want the item after making a few payments?

What happens if the item goes on sale after I’ve put it on layaway?

Does the retailer or thirdparty layaway service have a good BBB rating?

Clearly understand the risks of layaway. Remember companies are holding merchandise for you that could be sold to other consumers.

If you miss payments or do not fulfill the obligations agreed upon when the items were put into layaway, then you risk losing your money,.