Christmas shopping begins early
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.
Layaway services are back in a big way, with many businesses now shaking the dust off their layaway programs for today’s beleaguered consumers.
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 90 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 brick-and-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 (BBB) advises consumers to get everything in writing and offers the following tips:
Read the fine print. Ask the company for a written contract for the layaway and read it carefully. Keep in mind that layaway policies may differ from one company to another.
Layaway period. Ask how long the item can be on layaway? The length of time that items can be placed on hold varies from store to store.
Merchandise holds. Find out if the item being placed on layaway is put on hold immediately or when it is paid for. Some consumers were informed that the product they were paying on had been sold to another consumer.
Payment dates. Make sure you know the specific date when each payment must be made by. If a payment is not made by that date, the layaway item can be sold to another consumer or returned to stock, and you may lose the money you have paid down on it.
Refund policy. Read the company’s refund policy carefully. Retailers’ policies may differ: some give all the money back; others may charge a non-refundable service or restocking fee; still others may offer a merchant credit for the amount you paid.