Lay-away vs credit card

[AppyLover2]

A friend mentioned something yesterday that I'd never thought about. That is that using lay-away is almost like using a credit card....without having to pay the interest. I'd never thought about it that way but I thought he had a good point.

 

[Miniv]

There's also the incentive to pay it off because you can't use or own the item until it is!

 

[Bess Kelly]

Lay Away was very popular years ago -- when credit cards were not the vogue.

It allows you to buy on payments -- some people will not "save" for something but will pay a "bill".

As Miniv says, the incentive is to pay it off for it's use/possession!

For some it is a way to get what they want/need with the benefits of --- not being sold out when $ is available, limiting what you buy as it is "all done", budgeting within your means, developing some discipline that may not have been there before. It's not a bad thing.

 

[AppyLover2]

The incentive to pay it off is a good point. Hadn't thought about that.

 

[Nathan Luszcz]

Except if you decide not to pay the company just says "fine" and keeps your money...

 

[Margo_C-T]

There was an informative segment on the 'Today' show late last week about the 'return' of layaway. Points made: there ARE fees to use layaway($10 was mentioned); also, if you change your mind, you WILL pay a penalty-not sure how much, or whether the store could keep ALL that you've paid up until that time-- but good incentive to ask about all terms BEFORE opting to use layaway.

That said, it was pointed out that unless you pay your credit card charges off IN FULL every month and on time, any fees for using layaway would probably be less expensive than paying interest on your credit card.

In over 40 years of holding credit cards, I've gotten a payment in late a time or two, so had to pay maybe a total of $30? in interest/penalties over that time. Credit cards are a GREAT tool, but IMO, ONLY if pay them off in full each and every month, and on time...AND, you budget for how much you can afford to put on credit cards, just as you would for any other category of spending. If you can't do that, I'd say that layaway, properly researched and adhered to, would be an excellent alternative, and I think it's a good thing to see it being more widely reinstated.

Margo

 

[Southern_Heart]

Although its been like 30 years that I have used lay-a-way. Are any service or layaway charges added to the purchase price now a days? I think it was something like 50 cents back then.

I never see any Lay-a-ways signs in any stores now. Maybe I am going to the wrong stores.

Margo_C-T I just read your post... $10.00 WOW! Seems a bit much....

I'll just stick to writing checks and using my credit card for emergencies. I don't have a big family so Christmas is really easy on me.

Joyce

 

[Margo_C-T]

Joyce-

Just to clarify-I *think* the figure of $10 was mentioned, but with NO further explanation or detail, so it really wasn't clear whether that is a CORRECT figure, or an 'across-the-board' one...as we all know, the media 'has been known' to be incorrect and/or incomplete in what they report!!

Sounds like you are a sensible spender with the right priorities; that's what I admire and would advocate!

Margo

 

[Southern_Heart]

Margo_C-T

Ok I forgot that you were quoting the 'Today' show . Sorry.

I saw the $10.00 and went into shock.

Thanks for clarifying that for me.

Joyce

 

[Bess Kelly]

Wow, Margo & Joyce & I are really showing our age -- we remember no or close to no, charges for lay-away

Betcha you two remember gasoline at about 25-30 CENTS a gallon, too.

Yep -- and I remember that several of us were "pooling" our money to be able to buy a few gallons to cruise for the evening at 30 cents per.

Things never change, just the time & size, it's all relative.

Board on my first horse was $12.50 mo, which was huge when you realize that my parents paid $53. a month for a mortgage on their $8,500. home

Boy was THAT waaaaay back.

 

[Carriage]

We have offered interest & charge free lay-away for 20 plus years now. We had one gal take nearly a year and a half to pay for a cart.

I have long felt that we need to walk our talk of severely limiting "credit" usage and want no part of folks going into debt to buy our products. This philosophy has to major points,

1) very strong religious views on usury (Nehemiah)

2) Understanding money and the banks manipulation of same. Also I do my very best to never allow a bank to make money on my labor.

With credit cards, a vendor can find out the hard way that the money received from such debt instruments is never truly theirs. Back when we allowed our dealers to accept c.c.'s we found that a full 8 months later that the card company could come back and remove that money leaving you to scramble to replace it in the dealers account. And trust me, the truth did not matter. Point is, as long as its ones and zeros in a computer, the money is never truly yours because it never existed anyway.

Am wondering how many accepted the challenge to read the book "Creature from Jeckyl Island" by Griffin?

Bb

 

[Sonya]

Many stores do not have lay-a-way anymore. I have used it a couple times because a high priced item I wanted was on sale and I didn't want to charge it, but didn't have cash in hand at the time. It's very convenient.

I don't think wal-mart even has layaway anymore...but I guess they figured they didn't need it because they will give anyone under the sun a wal-mart credit card.