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One staple of the holiday season that had all but disappeared in recent years is the layaway option that was available at many retail stores.  The availability of easy credit and credit cards for everyone had reduced the demand for layaway services and most retailers had closed their layaway departments, but with the economic situation facing the country today, many consumers are putting away their credit cards and opting for a low cost layaway program instead.

Many people are now choosing layaway programs instead of placing the items on a credit card as a way of avoiding incurring holiday debt.  Consumers can choose the items that they want for their family weeks in advance of the holidays, have the retailer store away the items in their layaway warehouse, and make payments on the purchase price of the items until the items are paid off, typically in the last few weeks of December. 

Things To Keep In Mind

If you are interested in using layaway for your holiday shopping this season, there are some things that you will need to keep in mind.  The first thing to keep in mind is that there are a limited number of stores that currently have layaway options available so choose your items early before the rush begins and you have to wait in long lines to get your layaway order processed.

Another thing to remember is that you will be paying for all of the items that you place in layaway, so be selective and choose only the items that you truly want.  If you are on the fence about a particular piece when you are choosing your layaway items, place the item back on the shelf.  If you decide that you still want the item at a later date you can always go back to the store and purchase it, which will be much easier than attempting to take the item out of layaway once it has been processed in.

There are upfront costs associated with most layaway programs.  When the items are placed into layaway, there is often a 10% to 20% down payment required and a small service fee is added by the company for storage and retrieval.  In many cases, the down payment and service fees are non-refundable although some companies will allow the money to be refunded to a gift card that can be used at the retailer on a later date.

It is important to read all of the terms and conditions associated with the layaway program before choosing to submit items and pay the down payment.  Some programs require the payments to be made in certain intervals and some others have a specific date by which the items must be paid for and picked up.  Layaway programs can be a great way to monitor your holiday spending and resist creating more debt, but you should know exactly what is required by the program to prevent a holiday nightmare.