Budgeting with layaway?

armatav

For people who have used layaway or regularly use layaway plans - how do you go about doing it, and why don't more people just use layaway to pay for their stuff to budget?

What is the problem with layaway?

EarthBoy

What's layaway? I've never heard of it.

adonis

Is this it,
https://www.moneysavingexpert.com/team-blog/2016/10/17/the-toys-r-us-christmas-layaway-scheme-is-it-all-its-crack-up-to-be/

I wouldn't with the financial problems at toys r us

armatav

Yeah pretty much you pay things off and then get the item, I'm wondering if anyone here uses an online version of layaway that maybe lets you get the item first and pay it off over time

eskbanker

armatav wrote: »

Yeah pretty much you pay things off and then get the item, I'm wondering if anyone here uses an online version of layaway that maybe lets you get the item first and pay it off over time

Sounds like a less sophisticated version of purchasing with a credit card (i.e. without the protections, etc), what would be the appeal of such schemes if they existed? Aimed at subprime borrowers with poor credit ratings (and correspondingly eye-watering APRs) perhaps?

Shakin_Steve

armatav wrote: »

Yeah pretty much you pay things off and then get the item, I'm wondering if anyone here uses an online version of layaway that maybe lets you get the item first and pay it off over time

Try Brighthouse...........they'll be only too glad to see you.

TheBanker

When I were a lad, this used to be quite common. For example you could pay for Christmas presents over a few weeks/months. It was before credit cards became as common as they are now and.

As pointed out by adonis, you are at risk of the retailer going bust between making your payments and receiving the goods. Much safer to save the cash in a bank account (or in a jam jar!) and then pay in full. Those who used to save for Christmas with Fairpack Hampers will understand how things can easily go wrong.

Anthorn

Been ages since I've seen this. I first experienced it with my late mother and her knitting. At the drapery shop she used to get a knitting pattern and the wool laid away and then she paid for the wool as she needed it. More recently I saw it at a baby clothes shop where mothers-to-be laid aside the baby clothes and then paid for it weekly getting each item as it was paid for.

In my experience it was used by small local retailers which couldn't afford to offer credit.

EarthBoy

I know what layaway is now it's been explained. I can't see it offering any advantages over saving the money in the bank/building society, or even under the mattress, until you've saved enough to pay for the items.

TheBanker

EarthBoy wrote: »

I know what layaway is now it's been explained. I can't see it offering any advantages over saving the money in the bank/building society, or even under the mattress, until you've saved enough to pay for the items.

I think it's from a time before working class people all had bank accounts and giving the money to the shop removed the temptation to spend it on somthing else. Plus you had the "securitu" of knowing your item had been put aside and wouldn't be sold to someone else.

Robisere

TheBanker wrote: »

When I were a lad, this used to be quite common. For example you could pay for Christmas presents over a few weeks/months. It was before credit cards became as common as they are now and.

As pointed out by adonis, you are at risk of the retailer going bust between making your payments and receiving the goods. Much safer to save the cash in a bank account (or in a jam jar!) and then pay in full. Those who used to save for Christmas with Fairpack Hampers will understand how things can easily go wrong.

That's the way my parents' generation used to pay for Christmas and birthdays, usually at the local village Co Op or town stores, which were not the huge places we see today. (Which outlets are slowly being strangled by online purchasing.)

As said, no credit cards then and my parents' bank account was the Post Office, until I changed that. It was a different world. Layaway really has no place today.