Tuesday, November 18, 2008

If you're an internet savvy I'm sure you've seen advertisements of lay-away programs being offered left and right by big stores in the USA. Okay. One Store. Kmart. Most young people do not know what a layaway is. Layaway, which has its roots in the Great Depression, was eclipsed in the past two decades as economic prosperity grew and consumers began using plastics or credit cards to purchase. Before, everyone bought everything on layaway - furniture, jewelry, clothes, appliances... everything, well except for perishables.

How does layaway work? Layaway is a way to buy an item without paying for the entire cost at once. A customer sort of reserves the item that he wants. He then makes a deposit for no more than $15 or 20% of the total cost of his item. The store keeps the item and for the next eight weeks, the customer pays bit by bit until the total cost has been fully paid. Then he can take home the fully paid item. No interest. No credit. You get your stuff intact.

Layaway as a payment method is being promoted again this holiday season as a way for budget-conscious shoppers to buy gifts without breaking the bank. Kmart Layaway for the Holidays is back! Check the site for a chance to get your wish list or Christmas gifts.
Posted by desperateblogger On 11/18/2008 05:54:00 PM No comments

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