Could layaway ever make a comeback?
For a certain generation, credit wasn’t always an option.
Back in the ‘60s and ‘70s, that is, credit cards simply didn’t have the same stranglehold on consumers as they do now.
Many bought things with cash or they just didn’t buy. At the very least, they used the now all-but-defunct method of shopping known as layaway.
You might remember layaway. With it, shoppers could pick out any merchandise they didn’t have the up-front money for and have the store stash it aside to pay off in instalments. At the end of a pre-determined payment cycle – usually a month or two – the product was finally yours.
Think of the reward for customers, too. This item was something you’d truly worked toward, something you’d genuinely earned.
Of course, that was then. Try explaining layaway to a new generation of shoppers and you’re going to get the same perplexed reaction:
So, why wouldn’t I just use my Visa again?
Indeed, we live in a culture of “buy now,” no matter what the consequences. But, could layaway ever make a comeback?
The San Jose Mercury New seems to think so, noting many big-time retailers like Sears and Toys R Us are dusting off their layaway programs and bringing them back for shoppers to consider this holiday season.
And customers appear to be, especially where online shopping is considered.
Third-party financing sites like elayaway.com are becoming popular, offering layaway partnerships with stores like Best Buy and Home Depot for a fraction of the interest (1.9%) charged by your credit card.
Now, it’s tough to argue against layaway without sounding like a short-sighted moron because, frankly, it’s the more responsible thing to do.
Any parent will tell their kids not to buy something unless they can afford it, and they’re right. But, we want things now, and with a credit card, we can get that.
So what’s the big deal about layaway, then?
“When you don’t really have the money to buy something, putting it on layaway forces you to budget,” one source tells the Mercury News. “Use a credit card and you’ve already bought it and are enjoying it and you don’t think as much about making the money to pay it off.
“So layaway is safer. (We) wouldn’t be in the credit card mess we’re in if we’d all just use layaway.”
By Jason Buckland, MSN Money
Posted by: DAN RIEDIGER | Nov 11, 2021 9:38:05 AM
BRING IT BACK . . . . WHY SHOULD ANYONE NOT PAY THEIR OWN BILLS . . . TO MUCH MONEY MADE BY THE CREDIT CARD COMPANIES . . . . MONEY THAT COULD BE SPENT GENERATING THE ECONOMY . . . YES I AM FOR IT . . . SD66
Posted by: Sandy-Lee | Nov 11, 2021 9:45:06 AM
I agree bring back lay a way
I miss the days where you had a longer period of time to get the items. I see k mart is honoring but places like walmart and future shop not so much, really makes me deture buying from the stores at all!
Posted by: Jenn | Nov 11, 2021 10:24:57 AM
I also totally agree with layaway! I have a much better sense of pride knowing I have budgeted each month to work towards the desired item on layaway. I don't own any credit cards because i know how easy it is to fall into the trap of buying now, pay later and the debt grows bigger and bigger. Within the last year thanks to layaway I have been able to purchase items I never would have been able to afford otherwise and I remain debt-free. I wish more stores would bring it back.
Posted by: Karin | Nov 11, 2021 11:10:29 AM
Bring it back!!! Up until about 2 years ago Walmart still has layaway and it was a wonderful way for peoplesuch as my self- single moms etc. to get the things that really wanted to for there children and themselves, and makemaymentson them...budget, and still know thw merchandise will be available once the money is saved. I miss not having the option to purchase things this way. Visa is not an option for me, nor do I ever want it to be again. Layaway helped a lot.
Posted by: Wendy | Nov 11, 2021 11:26:16 AM
Walmart in Canada has a layaway plan. It is great. Much better than putting on a credit card as you pay in full for what you get. When using a credit card, most people never get it paid off.
Posted by: Heather | Nov 11, 2021 1:34:10 PM
Wow, what a coinky-dink! I was just talking about 'layaway' the other day with my son (he's in his 20's) I was saying how much I missed this service and how it was a win-win both for the buyer and the retailer. It's so much better than using credit! I don't use credit cards because I can't afford to be in debt. It wasn't that long ago Winners had the service and I took advantage of it all the time, it really helped!! Bring it back!!
Posted by: Heman | Nov 11, 2021 2:57:45 PM
credit is not all bad. how many of you would not have a house if it wasnt for credit? if i know i am getting paid thousands of dollars in 2 weeks but i want to buy something now, why delay the purchase when i can buy it now and pay it off in a couple weeks? You only live once, you have to enjoy yourself. Living frugal is no fun.
Posted by: Vikki | Nov 11, 2021 3:17:45 PM
I was very disappointed when my local Walmart did away with the layaway. There are so many benefits! You pay no interest, have 30 days (they would extend on occasion too), just pay 10% to hold...and...you get that back if you don't end up buying it all. Not only that, but it's a great way to control impulse buying, in a way that you get both the satisfaction of buying and considering the purchase after! Great at Christmas, Easter, back to school. I can honestly say that I probably don't spend as much there as when they had layaway! I'm guessing it was an executive decision to go with the utter inconvenience of credit cards!
Posted by: Josi Margesson | Nov 11, 2021 3:39:38 PM
I really agree with bringing Layaway back..it makes you really consider whether this purchase is what you want or need by giving you the time to think. I feel many people suffer for buying on impulse by experiencing 'Buyer's Remorse', but are not willing to own up to this. They just go on paying for something which is maybe too extravagent for their budget, all the while rationalizing that uncomfortable feeling of guilt....At least having the option of Layaway is a good solution to this..so, yes, bring it back :)
Posted by: Dave Brown | Nov 11, 2021 4:05:32 PM
If the retailer is 'stashing aside for the consumer to pay off in installments', it would also delay the immediate depreciation in book value on the product that occurs after a new purchase. It is a fundamental recalibration matching consumer behavior with fiscal responsibility.
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