Layaway plans have been around for years, but they are not as prevalent today. Here are a few things to keep in mind when considering a purchase through layaway.
•Be sure the item is actually set aside. Some retailers provide replacements if an item is sold out or not in stock.
•Check for hidden fees, such as on returns or cancellations. They shouldn’t be more than $10 or $20.
•Do the math. A $500 purchase on layway can cost as little as $505 at some shops. On a credit card with 18 percent interest, it’s $515.07 if paid off in three months.
•Know how refunds are handled. Some retailers offer only in-store credit while others provide cash.
•Though many stores restrict the practice, some consumers still use a credit card for layaway purchases. Don’t.
•Online purchases should be through established businesses and on secure networks. Check around.
— David Migoya
