What is Lay-away?
Lay-away is a type of purchasing agreement between a customer and a merchant, where the customer pays for an item over a period of time, and the merchant agrees to hold the item until it is paid in full. Typically, lay-away agreements require the customer to make an initial deposit, followed by payments made at regular intervals, until the total cost of the item has been paid.
Advantages of Lay-away
Lay-away offers several advantages to customers. These advantages include:
- The ability to pay for items over a period of time, instead of having to pay the full amount upfront.
- The assurance that the item will be held until it is fully paid.
- The ability to avoid high-interest credit card payments.
- The opportunity to purchase items that may not be available in stores when they are needed.
Examples of Lay-away
Lay-away is commonly used for large purchases, such as furniture and electronics. However, it can also be used for smaller purchases, such as clothing and toys. Many stores, both online and in-person, offer lay-away plans. In addition, some stores offer special lay-away programs for holiday shopping. For example, Kmart offers a “Holiday Layaway” program, which allows customers to pay for items in eight equal bi-weekly payments.
Conclusion
Lay-away is a great way to purchase items that may be too expensive to pay for all at once. It can also help customers avoid high-interest credit card payments and ensure that items will be available when needed. For more information about lay-away, see What is Lay-away? from The Balance and Layaway Plans from the Federal Trade Commission.