what's the purpose of layaway?

[zinfamous]

I think layaway is a service that is catered towards low-income/bad-credit people. Otherwise, like you had mentioned, why not just put it on a credit card or apply for store credit.

credit card = interest charged on debt.

layaway = zero interest, item is reserved for you.


pretty fucking simple.

 

[AMDZen]

credit card = interest charged on debt.

layaway = zero interest, item is reserved for you.


pretty fucking simple.

And you're pretty fucking wrong.

But what else is new

 

[actuarial]

...it's still cheaper than a credit card.

compared to same item, same store, putting that purchase on a cc vs credit card and paying off the same amount.

layaway = cheaper.

The only difference, of course--is that you own now or own later. This can be a huge difference for some people, of course.

Layaway is only cheaper if you're buying very expensive stuff, and don't plan on paying it off by the end of the month.

I purchase everything on my credit card, because after rewards it's cheaper than cash/debit. And by everything, I mean probably over 90% of all my consumer spending is put on a credit card.

 

[jhu]

When you use layaway, you're charged a fee. You do realize thats what interest is?

Depends on the store. I was never charged a fee at the coin shop. But they knew I was just a kid with an allowance.

 

[AMDZen]

Layaway is only cheaper if you're buying very expensive stuff, and don't plan on paying it off by the end of the month.

I purchase everything on my credit card, because after rewards it's cheaper than cash/debit. And by everything, I mean probably over 90% of all my consumer spending is put on a credit card.

And if you're purchasing very expensive stuff, then why wouldn't you apply for the in-store credit offering 3 months, 6 months, 12 months or even 24 months zero interest?

a) Because you have bad credit
b) Because you don't like credit cards (usually the cause of reason a)

Most people with bad credit are low income, not all - but a significant majority.

 

[hanoverphist]

layaway is cheaper and smarter than all of those options...


--and for option 3--no guarantee that the item(s) will be there when you have enough money, 2 or 3 months later--especially in-demand items during holiday season

THIS. im very poor and have yet to use layaway. but there were times i wish i had used it, would have saved me a bunch of hardship when looking for specific toys late in the season when my kidlings were little.

and holy crap, a lot of people looking down their noses at people for using a service that is cheaper than credit rates and guarantees stock. you guys are way too good for me i guess.

 

[hanoverphist]

When you use layaway, you're charged a fee. You do realize thats what interest is?

must be in the fine print. ive never tried to do it, but from others i know that have they havent been charged a fee. but thats old info, so mebbe its different now.

 

[AMDZen]

must be in the fine print. ive never tried to do it, but from others i know that have they havent been charged a fee. but thats old info, so mebbe its different now.

Obviously this is just one example, but its pretty much the same everywhere

 

[actuarial]

And if you're purchasing very expensive stuff, then why wouldn't you apply for the in-store credit offering 3 months, 6 months, 12 months or even 24 months zero interest?

a) Because you have bad credit
b) Because you don't like credit cards (usually the cause of reason a)

Most people with bad credit are low income, not all - but a significant majority.

I've seen lots of 'don't pay for a year' offers where you're charged an admin fee that can be as high as $100.

I dunno if this applies to store credit cards as well though, because I've never used one.

 

[AMDZen]

I've seen lots of 'don't pay for a year' offers where you're charged an admin fee that can be as high as $100.

I dunno if this applies to store credit cards as well though, because I've never used one.

I've used store credit at numerous places:

Best Buy
Ultimate Electronic
Lowes
Home Depot
Sears
2xFuniture places

And I've never seen anything even remotely what you're talking about .... so. Link?

EDIT: I now see:

I dunno if this applies to store credit cards as well though, because I've never used one.

So why did you even bring it up?

 

[Doppel]

Hide it in a tupperware container? We've filled half a room with Christmas gifts before. Enough to be an inconvenience to a neighbor if left there for a month or longer.

Can't you wrap them first and place in the guest room? That is, unless you want them to literally think no gifts exist until Christmas day, but that then requires grabbing all the layaway stuff on Xmas eve which is risky if a snow storm hits

poor people are born into poverty, more or less. Just as wealthy people are generally born into wealth. There are outliers, of course, where certain individuals can cross both ways, but for the most part, you are born into a condition and learn the behaviors of that condition.

arguing that poor people are poor simply because they are bad with money, is, more or less, arguing that it is a genetic condition--that it is somehow a fault of their person that distinguishes them from wealthy people. It implies that another behavior can not be learned.

Agree with first paragraph and second. Wealthy are basically born that way without much class mobility and same for poor, but there is a genetic conditions; wealthy are typically smarter and more capable. That's because there is some class mobility and over time the competency of people to succeed economically is reliant upon more than just who they were born to.

I don't hold the anyone can make it idea. I was lucky to be born into my class (as most of us here were), but I also do think I'm not simply average, because my parents weren't and I share their genes.

 

[waggy]

When you use layaway, you're charged a fee. You do realize thats what interest is?

sure you charged a fee. walmarts was $5. Most people can swing that. now a CC's interest is a lot more.

shrug. to look down on someone for using layaway is retarded. i would rather someone use it then put it on a CC and waste more money. or sit and pay the min balance off for the next 230 years.

 

[LiuKangBakinPie]

so, for someone with a high-income and good credit, what's the purpose of layaway?

If you want to buy someone a present and its still early and your afraid you wont get it later its perfect

 

[AMDZen]

sure you charged a fee. walmarts was $5. Most people can swing that. now a CC's interest is a lot more.

shrug. to look down on someone for using layaway is retarded. i would rather someone use it then put it on a CC and waste more money. or sit and pay the min balance off for the next 230 years.

I think you misunderstand, I'm not looking down on someone for using it - people can do WTF they want. However, there is a reason why it went away for years and nobody was offering layaway again until recently. Why offer a service that nobody uses?

Now its back due to the economy, that is point A. Its a service for low income people, and it makes total sense for them, that is why its back. Not everyone has good credit either, low income or not. Those people should use layaway if its an option. Just don't pretend like that isn't the reason you're using it. I got in to this discussion because frankly, zinfamous is a moron and I had to draw the line after he argued his point all the way up to the preposterous notion that even rich people use layaway.

I am simply arguing the point that layaway is for low income or people with bad credit. Thats all.

 

[LiuKangBakinPie]

Indian shops do it a lot. They dont like giving credit

 

[goog40]

Layaway might make sense for locking in a great deal or reserving a hard to find item, but I have a feeling that the overwhelming majority of situations where it's actually being used don't fall into either of those categories.

 

[actuarial]

I've used store credit at numerous places:

Best Buy
Ultimate Electronic
Lowes
Home Depot
Sears
2xFuniture places

And I've never seen anything even remotely what you're talking about .... so. Link?

http://www1.thebrick.com/brickb2c/jsp/flyers.jsp

DO NOT PAY FOR 15 MONTHS - O.A.C. All credit offers available upon approval of credit only on your Brick Card Platinum, minimum purchase of $250. Any Brick delivery charges, GST (5%), PST or HST (if applicable), and administration fee ($99.95) are required to be paid at time of purchase.

EDIT: I now see:

I dunno if this applies to store credit cards as well though, because I've never used one.

So why did you even bring it up?

I brought it up because I was fuzzy on the difference between store credit and a store credit card. I've been offered the no interest thing without having to get an actual store card, and in those instances I've always seen the admin fee. It seems from the above it can also apply to store credit cards if you want the no interest for a long period of time. This is of course all Canadian specific info, and doesn't apply to all retailers.

 

[SlitheryDee]

We only charge a fee if the customer wants a refund on a layaway.