While it’s always better to save your money and pay cash for most items you buy, layaway is a more viable option compared to credit cards to secure and enjoy interest-free holidays. More recently this purchase option has enjoyed a resurgence, especially as people begin to prepare for the upcoming season. Therefore, I encourage you to jump on the bandwagon as many of you are preparing for a spending spree in the not so distant future.
Bear in mind, there are some drawbacks to layaway; you are pretty much stuck with the items you set aside and If you do not pay it off within the designated time frame, you will incur more fees. Also, while the bite-sized payments are manageable, you must consider whether you can truly afford the purchase, particularly if it’s a big-ticket item. Consequently, layaways are not for everyone, however it’s a far better choice than high-interest credit card loans.
Layaways are awesome because:
- The service is not expensive; payments are interest free.
- It helps you to manage your money better.
- It increases your level of patience and enhances deferred gratification.
- It serves your spending plan (or budget) well.
- It provides an opportunity to purchase what you want in an affordable fashion.
So, if this option resonates with you, here are a few stores offering a layaway plan during the holiday season (and perhaps all year long) to help you guarantee you get what you want and pay a little as you go.
BURLINGTON LAYAWAYPROGRAM
Burlington has offered layaway to customers for over 45 years. Shoppers have the option to use layaway all year, not just during the holiday season. Layaway is only an option for in-store shoppers and merchandise may be put on layaway for 60 days.
Fees: A 20 percent deposit based on the total sale amount is due at the time of purchase. An additional 20 percent payment is due 14 days from the purchase date.
There is a $5.00 nonrefundable fee. However, Burlington implemented a policy in 2016 that offered layaway customers a $5.00 promotional card when they completed paying for their layaway on time. Check with your local stores to see if the policy is still in effect.
There is a $10.00 cancellation fee (plus tax where applicable) upon any change to a layaway or if layaway is returned to stock.
Refunds of layaway deposits are returned to the shopper in the form of a gift card and not a cash refund.
TJ MAXX and MARSHALLS
The off-price stores TJ Maxx and Marshalls offer layaway in some, but not all of their stores. A deposit of 10% is required and layaways must be paid in full within 30 days. Jewelry and clearance merchandise may not be placed on layaway.
There is a non-refundable service fee and a cancellation fee of $5.00. The service fee may not be the same in all locations, so it is a good idea to contact your local store.
WALMART
Each year, Walmart seems to extend its holiday layaway program. The annual program has begun as early as late August and typically runs through mid-December. Offered only in stores, but it extends to some big-ticket items like electronics, furniture, toys, select sporting goods, small appliances, and even jewelry.
There’s no opening fee required for a Layaway. All you need to do is make a small down-payment of $20, or 20%, whichever is greater. Individual items must cost $10 or more. Your total purchase must be $50 or greater. You can make payments anytime on your Layaway at any register in the store. You can sign up for email or text reminders about payments. If your layaway account is canceled, items will be returned to inventory. Any down-payment and payments made will be refunded, less $20 or 20%, whichever is greater.
For more information, visit the Walmart Layaway policy page that is posted online.
BIG LOTS
Big Lots has a plan like a layaway plan, but it is not promoted, and it may not be available at all stores. The program is called “Price Hold” and it is mostly used for furniture purchases.
Fees: When putting an item on “Price Hold” 10% of the purchase price is required as a deposit. Big Lots will then hold the item for 90 days. Some stores may charge a nonrefundable $5.00 fee.
Lease-to-Own Program from Progressive Leasing for Big Lots:
The program is managed through Progressive Leasing. Qualifying items include sofas, loveseats, sectionals, dining sets, and mattresses, as well as seasonal items such as outdoor patio furniture, gazebos, umbrellas, grills, chairs and more.
The policies differ from each state and the program is not offered everywhere.
Most lease agreements are for a maximum of 12 months but can be up to 15 months. There are also shorter 90-day agreements available in some areas.
BEST BUY
Only select Best Buy stores are currently offering layaway and you can only layaway a purchase of at least $250 and the service fee is 5% of the total cost, which can add up for expensive items.
Twenty-five percent of the purchase price is required up front. This lowers your biweekly payments, but can lead to a bit of a sticker shock. You are required to make a payment every two weeks, and you have up to 8 weeks to pay off a computer or 12 weeks for other items. You can’t layaway clearance items, promotional items, or post-paid cell phones, among other items. But otherwise the restrictions are pretty minor.
GAMESTOP
It’s not just department stores with layaway programs for holiday shopping. Get that new Xbox or PlayStation now, and pay later. GameStop offers layaway on select items, which can be video game hardware and/or accessories to name just a few. Due to legal restrictions, however, it is not available at in the District of Columbia or Maryland.
The layaway lowdown:
- Only available during the holidays.
- For in-store purchases on certain game systems.
- No service fee.
- Down payment of $25.
- Guests can trade in video game items during the layaway program and allocate the proceeds from that trade as their $25 down payment.
- Pickup must be made where the layaway was initiated.
So, in conclusion, if you want a great holiday – just lay it away!
-Carla Madison, EA
Carla is an Enrolled Agent, a designation conferred by the IRS that deems her one of America’s tax experts! She also has a graduate certificate in Financial Planning from DePaul University and has spent more than 20 years assisting clients with Taxation, Accounting, Asset Protection, and Financial Planning. She is a member of the Association of Financial Educators and since 1998 has served as an instructor of financial education for various Chicagoland institutions.
Additionally, Carla is the owner of Madison Financial Solutions, (www.mfs4u.com) where she assists her clients with tax and financial planning advice.
About Post Author
