Layaway
This just in: layaway is a payment option of the past.
Wal-Mart announced that it will end its layaway service on November 19th this year. see article here
What is layaway? Do you use it in your country?
Layaway is a form of payment where the buyer can reserve goods by giving the seller a deposit and may collect the goods when the balance of the price is paid in full. For example, you want to buy a barbeque from Wal-Mart, but it’s $500 and you don’t have that much money right now. You reserve the barbeque by paying a deposit, say $50, but you cannot take the barbeque home until you pay the remaining $400. The best part is, there’s no interest charges! If the customer cannot pay with a certain time (for Wal-Mart, normally 60 days), the layaway is cancelled and the customer gets their money back (though there is usually a small charge of about $10 or so).
Layaway is different from using a credit card because when you purchase goods with a credit card you may take them immediately, but you must pay interest, usually somewhere between 10-20% in North America.
Layaway is still popular on more expensive items that might have limited supply, or during Christmas season, when the most popular toys can become sold out long before Dec. 25. For a great article on layaway’s advantages and tips for using it, see here.
