Living Without Credit – Layaway Plans

by Bankruptcy Law Network (BLN)

November 29, 2008

Layaway is a great way to purchase goods without having to pay the entire cost at one time.  Typically in layaway, the consumer selects items from a store with a layaway plan.  The items are then put in storage and held for the consumer who pays for the items on a regular schedule.  When the entire cost of the items are paid in full, the consumer takes home the goods.  Interest is not charged but some stores do charge a small fee associated with layaway.  These nominal charges are nothing compared to the cost of credit.  If a consumer does not make timely payments on layaway items, the goods are returned to the store shelves and the payments made to date are either forfeited or returned to the consumer–depending on the store’s layaway policy.

Here are some good layaway tips:

  • Keep a copy of the store’s layaway policy with your receipt.
  • Understand when your payments are due and any fees associated with the layaway plan.
  • As with credit cards, be realistic about what you can afford.
  • Keep receipts and records of all payments made.
  • Do not shop for additional items while in the store making a layaway payment.
  • Only deal with reputable, established businesses as the store providing the layaway plan will be in possession of your money and your goods until you pay the layaway in full.

Here are some national retailers who have layaway plans:

And online shopping with layaway plans at:

Using layaway requires some advance planning.  However, the benefit of living without credit far outweighs the burden of a little planning!

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Last modified: May 7, 2014