The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
  • Building Wealth
  • Investing
  • Credit Scores
  • Student Loans
  • Paying for College
  • Saving Money
  • Real Estate
  • Credit Card Debt
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

Layaway Shopper Beware

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Personal Finance
Reading Time: 3 mins read
Layaway Shopper Beware
9
SHARES
146
VIEWS
Share on FacebookShare on Twitter

If you’re already thinking about holiday spending and want to be a savvy shopper, you might be considering using layaway in order to stick to a budget or avoid racking up credit card debt.

I think using layaway is a great strategy and we’ve had a number of retailers in recent years start to bring back layaway in a big way. But before you use the layaway process it’s still important that you make sure that you read the fine print for any retail deal that you enter into. It’s also smart to ask a few questions to make sure that layaway is the right choice for you.

The Better Business Bureau actually recently gave consumers a checklist of questions to ask to know, when you’re buying items on layaway, in order to help you get your money’s worth and the best possible terms while you’re shopping.

Here are 8 questions to ask before you commit to making a purchase on layaway:

1.     How much time do I have to pay for the item?

After you put some money down for a layaway purchase, you typically have a range of time to pay it off.

But some places may give you specific deadlines, such as 30 days, 60 days, or maybe even 90 days or longer. Whatever the case, you need to know exactly by what time/date you have to pay the merchandise off.

2.     When are the payments due?

If a retailer says you have to pay weekly, monthly or you have to pay on a specific day of the month, you need to know that to make sure that you can adhere to those terms.

3.     How much do I have to put down?

Some stores may require just $5 or even a couple bucks to start a layaway transaction. Other merchants may ask for a certain percentage, based on the overall value of the merchandise you plan to buy. Find out what’s mandatory to see if it meets your budget.

4.     Are there any other fees involved?

Do inquire about fees, as various places might charge you service plan fees, storage fees or other charges. If you’re going to use one of those third‑party websites that set up layaway plans for you online they might charge a fee for their service. So be sure that you know the additional fees you might incur in addition to paying for the goods themselves.

5.     What happens if something goes wrong?

Unexpected things happen in life, so it’s a good idea to know what would happen with your layaway purchase, or the money you’ve paid up front, if your finances change and you’re not able to meet the original terms of your layaway agreement.

Are you penalized, for example, if you miss a payment? Are there any “late fee penalties”? Do they return the item into stock or into their inventory? What exactly happens if you don’t pay as agreed? That’s important to know.

6.     Can I get a store credit?

Be sure to find out upfront if a retailer is willing to offer a store credit if you change your mind after making a few payments. You might simply change your mind or maybe you find the same item at a much cheaper price so you decide that you don’t want the layaway goods after all. Well, do you just lose your money or will the store actually issue a refund you or at least give you a store credit? A store that won’t issue a credit could be a deal-breaker for savvy layaway shoppers.

7.     What happens if the item goes on sale later?

Ask merchants whether they will discount the purchase price for you if you were buying something that was, say, $99 and you were going to pay, $33 a month for it. But then all of a sudden the item goes on sale for $79.

8.     Do they have a good rating from the Better Business Bureau?

It always pays to do a little homework on the companies with whom you’re doing business. In this case, before you enter into a layaway transaction, you might want to find out a retailer’s BBB rating. It tells you something about the way in which the company conduct business, the level of consumer complaints they’ve had, and so on.

Again, I like the idea of using layaway. Some people consider it sort of a throwback, kind of a relic of that old‑fashioned, good old method if saving up enough money for a purchase until you can actually pay for the whole thing in cash.

And you know what? That’s a good habit to get used to – or perhaps to get back to.

Back in the day, a lot of us used layaway as a way to budget and avoid credit card debt. And if you do it this holiday season, you’ll find that it can probably work for you as well.

Tags: layaway
Previous Post

List of Banks Offering Best Savings Rates and Highest Money Market Rates

Next Post

My Credit Report Still Shows Debt Written Off in Bankruptcy!

Related Articles

A Student’s Guide To Filing Taxes
Personal Finance

Breaking Down the ‘Penalties’ of Single Tax Filings

by Lynnette Khalfani-Cox, The Money Coach
tax refund
Personal Finance

Making the Most of Your Tax Refund

by Lynnette Khalfani-Cox, The Money Coach
Here’s How to Handle Stock Market Volatility
Personal Finance

How to Manage Your Finances with Inflation on the Rise

by Lynnette Khalfani-Cox, The Money Coach
AskTheMoneyCoach
Personal Finance

The Split-Second Shopping Decision That Could Save You Hundreds of Dollars

by Lynnette Khalfani-Cox, The Money Coach
Financial Advice on TikTok
Personal Finance

NEWS DIGEST: Breaking Down TikTok Finance Myths on Good Day New York

by Lynnette Khalfani-Cox, The Money Coach
Financial New Year's Resolutions
Personal Finance

Why Your New Year’s Resolution Should Start on Thanksgiving Day

by Lynnette Khalfani-Cox, The Money Coach
Lynnette Khalfani-Cox
Personal Finance

The Long View: Lynnette Khalfani-Cox: ‘There’s a Huge Wealth Gap in America’ Podcast

by Lynnette Khalfani-Cox, The Money Coach
Lynnette Khalfani-Cox
Building Wealth

Start Building Wealth in 2021

by Lynnette Khalfani-Cox, The Money Coach
Black tax
Building Wealth

Here’s what the “Black tax” does to so many families (Vox)

by Lynnette Khalfani-Cox, The Money Coach
Next Post
bankruptcy rejected AskTheMoneyCoach.com

My Credit Report Still Shows Debt Written Off in Bankruptcy!

About

Lynnette Khalfani-Cox, The Money Coach®, is a personal finance expert, speaker, and author of 15 money-management books, including the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom.

Lynnette has been seen on more than 1,000 TV segments nationwide, including television appearances on Oprah, Dr. Phil, The Dr. Oz Show, The Steve Harvey Show, Good Morning America, The TODAY Show and many more.

Quick Links

  • Money Coach University
  • Lynnette's Personal Site
  • The Money Coach Corporate Site
  • Video Portfolio
  • Privacy Policy

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Meet Lynnette
  • Money Coach University™
  • Books
  • Financial Coaching
  • Speaking
  • The Money Coach Recommends™
  • Media Kit
  • Contact

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist