Buying “on layaway” is making a comeback. As reported by The Wall Street Journal, the Depression-era retail practice of letting shoppers put items away while they pay for them a little at a time is coming back in fashion. Analysts cite our rough economy, which has limited people’s access to credit. Kmart has even made layaway the focus of a national ad campaign as it gears up for the all-important holiday season. An online company, eLayaway.com, allows customers to use layaway to purchase products from various retailers, and also offers its services as a payment method on other web sites.
Most layaway plans are not free. Stores typically charge a fee for putting merchandise on hold and require an upfront cancellation fee in case you don’t finish paying for the item. It would be far better to create your own layaway program, putting money earmarked for gifts into a separate savings account where it can earn interest until you have enough to pay cash for the item.
One other point about the upcoming holidays. A lot of people are feeling some financial pain or uncertainty right now. But that doesn’t have to put a damper on your holidays. Earlier this year I worked with the market research firm Synovate to ask people what they wish they had done more or less of during the 2007 holiday season. The answers, contained in a news release titled Holiday Regrets, can help all of us have a more meaningful, less financially taxing celebration this year.
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