Underrated in America: Layaway
Filed under: Budgets
Layaway, the practice of paying for products or services in installments before you get them, is getting a lot of attention these days. The Wall Street Journal, NPR, the CBS Evening News with Katie Couric, Consumer Reports, to name a few, have done stories on layaway recently. I wrote a post about it earlier this month, for what it's worth. It's a hot topic.It's easy to see the merits of a layaway program. I can think of several right off the top of my head.
There's no interest. Sometimes these programs will have fees attached, but generally, you save far more money by paying for something on layaway that paying for it over months or years on credit.
No impulse buying. Layaway programs aren't for people who want to buy something right away. I suppose you could impulsively agree to purchase something on layaway, but given that most purchases take several weeks or months to pay off, you can back out or usually put the money toward something else. So you're not likely to wind up with buyer's remorse after going through a layaway program or end up thinking, "Why did I spend so much...?"
It forces you to plan. While layaway was popularized during the Great Depression (although it was practiced long before that), and it endured as a popular way to pay for products and services into the 1970s, an entire generation or two has been weaned on the idea of being able to instantly buy everything from a bag of potato chips to a TV and worry about how to pay for it later. You just can't do that with layaway. You have to figure out how much money you'll put aside every week or month and when you'll be able to have what you're buying. You could make an argument that before getting a credit card, everyone should first have to pay for a product -- or numerous products -- on layaway first.
Don't miss the rest of our series on Underrated In America!
Clearly, the last couple decades, as getting credit has been easy, layaway programs have been underrated -- even mocked as something that only the desperate would do. have to wonder what will happen if the economy goes on the upswing sometime next year. Will layaway still be seen as something prudent or even fashionable? If credit becomes easy to get, will layaway still be popular and no longer underrated?I kind of doubt it.
Geoff Williams is a freelance journalist and the author of C.C. Pyle's Amazing Foot Race: The True Story of the 1928 Coast-to-Coast Run Across America (Rodale).
Reader Comments (Page 2 of 5)
10-30-2008 @ 7:10AM
Stacey said...
We are definately going to need layaway for this upcoming Christmas season. I can't see financing children's toys into August of next year! It just doesn;t make sense in this iffy economy!
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10-30-2008 @ 7:18AM
Jess said...
Yep Kmart has Layaway. That's how I did my christmas shopping this year.
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10-30-2008 @ 7:15AM
Robin said...
I couldn't believe it when Walmart decided to cut out their layaway on the direction of a woman who had come from Kmart. Kmart closed down in our area because they couldn't compete with Walmart anymore. They had closed their layaway long before Walmart. I'm not a planner, so Layaway was a tool that helped me to set forseeable goals and provided me an avenue to get the items I wanted and could afford over the time period it took to get them out.
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10-30-2008 @ 7:39AM
Gail Kehl said...
I shop all year for christmas and alot of that was done at Walmart using layaway.It was easy, you could shop at any time with very little money to put down, and you picked it up a couple of paydays later.They stopped layaway last year and I did alot of my shopping at Kmart, and I have shopped there again this for the same reason.Alot of people I talked to have also shopped at Kmart for that reason. Walmart has a bigger selection, but customers will spend there money where it's more convenient for them.
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10-30-2008 @ 8:45PM
Pamela said...
Walmart in a lot of areas has done away with layaway. I recently wrote a letter to walmart about them bringing back layaway and I urge others to do so to. You can contact them on their website. Maybe if enough people contact them and enough people shop at Kmart this year then Walmart will have no choice. But then again, Walmart is the "mega chain" and they feel they can do what they want. Even though I am guilty of shopping at Walmart, I will not be this year. Kmart and Martha Stewart here I come!! LOL
10-30-2008 @ 7:31AM
joyce said...
i remember layway when i was little . it was a big thing back in the 70's. now in today's time , i think that layways will pay off. i work in retail , but where i work they took layway out of all the stores. i dont understand the logic behind it to this day.
and if you are reading this , yes iam talking about walmart .
its not just my opinion, alot of customers tell me walmart needs to bring layway back.even my co-workers wish they would , but dont hold your breath anytime soon.
the only layway walmart has is for jewerly. not everybody is going to use that layway.
usually i used layway for christmas ,or birthdays. i havent used a layway since walmart had took there's out . alot of my co-workers are going to kmart . to use there layway at christmas. i might this year .
laysway is a good thing if people dont abuse it.
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10-30-2008 @ 7:41AM
john said...
bring back layaway...easier for christmas gifts
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10-31-2008 @ 7:18PM
Maeberree said...
A few years back I worked for Kids R Us. I suddenly found myself the young grandmother of 7 grandchildren. I had an absolute ball getting to see the new arrivals come in. I would purchase dozens of things for my kids,put them away on layaway and pay on them every payday. The best thing was if they went on sale at any time while they were on hold you got them for the sale price anyway. Layaway got my grandchildren a lot of beautiful things I could never have afforded otherwise. Please bring layaway back. Oh and by the way after three strike outs with credit cards I learned my lesson Cash And Carry the rest of my life.
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10-30-2008 @ 9:01AM
Lois Rochford said...
Layaway is good stewardship. It causes you to have a plan and can create excitement and anticipation. Over the long haul it will prevent from paying for something 10 times over due to interest charges unless you use your AMEX or debit card.
I love layaway!
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10-30-2008 @ 8:02AM
lascandals said...
Here was a nifty lil money saver we used when items were on layaway: when it came time to pick up your items to pay them off, ask the cashier to check thru the items to see if any of them were on sale while they were sitting in layaway. It may have been a pain in the neck for the employees to go thru the items on their registers but you are entitled to the sale price and the difference for the items that were on sale made a great savings. In some cases it was over $100 back, depending on what was put on layaway. All the retail department stores had layaway and sadly Walmart put them out of business, then stopped their own layaway because they claimed it saved on room.
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10-30-2008 @ 8:36AM
Mary said...
I agree with the people above. I've used Lay-a-way for kids christmas' also and I think if they brought Lay-a-way back it would be used alot in these times concerning the high unemployement rate and it would help a lot of families to have christmas this year and more.
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10-30-2008 @ 8:11AM
Jack said...
I honestly believed (and believe it still) that Walmart made a tactical error in withdrawing from layaway. Yet it doesn't seem to have hurt their bottom line.
Sears holding group really needs to consider higher quality merchandise for Kmart because I honestly believe that layaway may things very well be a substantive source of cash for them in this holiday season ahead.
consumers need to look seriously at Christmas clubs, secured credit cards etc. anything which will ensure financial solvency for the future no matter what happens.
I keep thinking of the term "the greatest generation" it wasn't just the war which made them that, it was surviving the great depression and coming back stronger.
I'm sure I'm not the only one who "asked santa" for things right out of the sears catalog (usually with a ten dollar limit). my parents budgetted for christmas starting right after the previous christmas. ( I'm one of ten children) and every christmas morning the tree was barely visible for the gifts under it.
They bought two homes neither of which cost what my current car cost, they worked hard, sometimes rolling coins to meet the mortgage payments, but they paid their bills and had only one credit card (sears) for emergencies.
I wish I had their wisdom and restraint when I was younger.
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10-30-2008 @ 8:11AM
Darlene said...
I have to agree with all. I use to shop at Walmart all year for christmas. Now my list has gotten a lot smaller. We talk about why Walmart took away their layaway plan. I don't shop there very much since they took it away.
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10-30-2008 @ 8:14AM
Dawna said...
I personally miss layaway our Kmart does not have Layaway.
I remember layaway at Walmart, Kmart, and even the Major stores like Sears, JC.Penney, Macys Etc.
BRING LAYAWAY BACK>
Im planning my wedding and could really use layaway now.
My fiancee lives with me and I told him I wish I could put it on Layaway, he asked me what this layaway is? He is from Poland and never heard of Layaway. And he feels that it would be nice to have a layaway, not only for the wedding, But also for birthdays and christmas...
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11-03-2008 @ 3:31PM
Bang said...
O M G! it would sure be nice if they brought layaway back. It was very dumb of them to take it away like that. What about poor families that can only make so much money barely enough to put food on the table. A bunch of them families relied on layaway. Hopefully, It's back. If not, then at least for Christmas.
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10-30-2008 @ 8:40AM
Maria said...
We use to have a Kmart in my town but they closed down a few years ago. How I wish it was still here. I do know Burlington Coat Factory has a 30 day lawaway with 25% down. I went and got a few things for Christmas there for my husband and boys. I also found a really great coat and a leather jacket for under 18.00 and that was cut way down from 80.00. They have clothes and outerwear and purses and and and.... but yes I wish Wal-Mart would bring back the layaway, the closest Kmart is Kileen for us and I just can't see going all that way just for a layaway.
Maria
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10-30-2008 @ 8:38AM
Shea said...
Layaway is back and growing, go to www.elayaway.com for the modern version of layaway
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10-30-2008 @ 8:55AM
Martha said...
Kmart, I just laid away my son's Christmas there and the fee was only $10.00 plus whatever you buy. I think it was 10% down. They give you 60 to 90 days to pick up depending on the Holiday schedule. The only way to shop. Walmart will lose a lot of business this Holiday season.
Martha
Jacksonville, NC
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10-30-2008 @ 8:57AM
kathy said...
i have to agree i wish that walmart did not take their layaway away i use to shop there all the time and would start my christmas layaway in july for i was buying for three children and 3 grand children. i go to walmart and buy a movie every tuesday and get my cleaning supplies etc. now i do that at KMART. I DONT SHOP WALMART ANYMORE!! because I thought it was a slap in the face for the working poor and working middle class if there is one of them left which i use to think i was middle class. i wonder if mr.walt who started this store really would have taking layaway away i use to think walmart was for the working people that had to use layaway etc but i guess us small working people put them where they are today big and hugh money makers and decided well we got big from the little people now lets take it ( layaway) away well i hope you are seeing this mr big ceo's the working people will go else where that have the layaways so i would reconsider your decisions and bring it back
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10-30-2008 @ 9:05AM
Cindy said...
I use K-mart more now. I love the convinience of lay away. Wal-mart made a huge mistake. I believe shopping will go down this year with out it.
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