Avoid Layaway Fee - Save Money Now | msnbc.msn.com

  • Thread starter DavidSnider
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In summary, layaway is a way for consumers to purchase an item in installments without incurring credit card interest charges or for those with bad credit. It also allows for assurance that a desired item will not go out of stock. However, it may not always be the most financially rational choice compared to saving up or avoiding purchases altogether.
  • #1


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I don't really understand the concept of this. If you are purchasing an item in installments and can't pick it up until it is payed off, why not just save the money in the first place and avoid the layaway fee?
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  • #2

Usually it's because you want that partcular item - something that might go out of stock and not be ordered in again, or you're purchasing something that's one of a kind. I wouldn't pay a layaway fee though. That's something that can be negotiated away if it exists at all.

It also offers a way of paying for something in installments without racking up credit card interest charges, or for people who have bad credit.
  • #3

From the perspective of the business, it allows some of the sales revenue to be taken prior to the moment of purchase, had the buyer saved and bought as you suggested.

For the buyer, layaway may be a way to take advantage of a sale price at a particular moment. A really rational consumer would weigh the discount of the sale price against the amount of interest that could be earned in a savings account in the time it takes to save up for the item.

The best way to save money is to forego purchases completely, of course, but temptation and necessity often obstruct that level of rationality.
  • #4

In the case of the article, the purchasers can rest assured that the things they've put on layaway will be there when they go to get them. They won't be out of stock.
  • #5
It seems like an unnecessary expense and inconvenience. I would recommend carefully considering your financial situation and budgeting for purchases rather than relying on layaway plans. Additionally, it may be more beneficial to save up for the full amount of the item and purchase it outright rather than paying extra fees and potentially accruing interest through a layaway plan. It's important to make informed and financially responsible decisions when making purchases.

1. What is a layaway fee?

A layaway fee is a charge that is added to the total cost of an item when a consumer chooses to purchase it through a layaway program. This fee is typically a percentage of the item's price and is meant to cover the cost of holding the item until it is paid off in full.

2. How can I avoid paying a layaway fee?

The best way to avoid paying a layaway fee is to pay for the item in full at the time of purchase. This means either using cash or a credit card to cover the entire cost of the item. By doing this, you will not have to use a layaway program and will not be subject to any additional fees.

3. What are the benefits of avoiding a layaway fee?

Avoiding a layaway fee can save you money in the long run. By paying for the item in full at the time of purchase, you will not have to pay any additional fees or interest that may be associated with a layaway program. This can help you to save money and avoid any unnecessary charges.

4. Are there any other ways to save money besides avoiding a layaway fee?

Yes, there are other ways to save money when making a purchase. One option is to wait for sales or discounts on the item you want to purchase. You can also look for coupons or promo codes that can help you to save money on your purchase.

5. Is it always a good idea to avoid layaway fees?

Not necessarily. In some cases, using a layaway program can be beneficial, especially if you are unable to pay for the item in full at the time of purchase. Just make sure to read the terms and conditions carefully and calculate any additional fees or interest that may be added to the total cost of the item. This will help you determine if using a layaway program is a good option for you.

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