there ever been a day when you really wanted to purchase something but just
didn’t have enough money in your pocket to do it? If so, one option available
is called layaway. Layaway purchase plans are designed for people that want
to purchase merchandise, but cannot pay in full immediately. Many different
kinds of layaway plans are offered in places such as discount department stores,
or specialty stores selling appliances, jewelry or clothing.
“How do layaway plans work?” The answer is quite simple. Layaway plans requrie that you make installment payments on the merchandise. You receive it only after you pay the full price. This plan is different than credit because when you buy on credit, you take the merchandise before you pay. Each store establishes the terms for their layaway plan. Most layaway plans involve making a deposit (usually a percentage of the purchase price), and paying the balance over a period of time until you have paid for the item in full. In return, the store retailer will hold your product until it is paid for.
Unfortunately, there are some problems you can experience if your understanding of the layaway plan is not up to speed. According to the Center For Debt Management, there are some key ways to avoid layaway problems.
Don’t forget that until you finish
paying for the layaway item, the store retailer has your money and the merchandise.
If the store goes bankrupt or out of business while you are still paying,
there is a chance that the money you paid and your merchandise may be lost.
According to the Center for Debt Management, the most logical way to avoid
this is to check the store’s reputation with your local Better Business
Bureau before you buy the merchandise on layaway. If it is your first time
shopping in that store, you might start out by purchasing an inexpensive item
on layaway, just check how responsible and loyal the store is. To avoid any
confusion about how much money you have already paid, keep clear and accurate
records of the payments you make; your records may come in handy later if
you have any disputes with the store.