Do you remember layaway? For those of you who don’t, it’s putting money down on items in a store that are put on hold for you in the storeroom, allowing you to make payments over time. Generally, layaway is interest free, but some stores do charge a nominal fee of about five dollars for the service.

Over the past year, layaway plans have been making a comeback. With the economy faltering in 2008 and consumers putting away credit cards, layaway or "lay-by" plans have become a popular service for stores looking to recruit and secure consumer dollars this holiday shopping season.

Layaway started during the Great Depression when people didn’t have the cash to make a purchase at once. A mainstay at stores until the 1970s and ’80s, stores started phasing out the service by offering the more lucrative and profitable store credit cards. Why wait to take your item home? Just get the store credit card and take your item home today and pay over time. This method worked until the current recession. 

What stores currently offer layaway?
While Wal-Mart did away with layaway years ago, Kmart kept this feature of frugality. Now, more stores have dusted off the layaway counter. Here are a few nationwide stores with layaway plans available:
• Toys R Us layaway 
• Kmart layaway
• Sears layaway (even online!)
• Foot Locker 
• TJ Maxx 
• Marshalls
• Men’s Warehouse
• Burlington Coat Factory

Remember, not all items are available for layaway and not all locations may offer layaway. Call your local store first to inquire if they are offering layaway service this holiday season.

Tips for buying on layaway:
1. Get a copy of the store’s layaway policies and staple it to your receipt.
2. Make sure you understand the policies such as maximum time between payments, schedule of payments, late fee policies, refund and exchange policies, markdowns on sale prices, loss or damage of items while in the layaway room.
3. Be realistic in what you can afford over time and what you put on layaway.
4. Keep clear and accurate records of payments made (staple them to the original receipt and layaway policy statement signed) in case you have disputes later.
5. When going to the store to make a payment, use the direct in-out method. Walk into the store and directly to the layaway counter to make the payment and then walk out and get back into your car. Do not browse, sample, sniff, touch … in and out. Once you are back in the car the chances of going back into the store to shop greatly decrease.

Don’t forget that until you pay off the items in layaway the store has your money and merchandise. If the store goes out of business while you’re still paying you could be out both the cash and goods so only deal with reputable businesses.

Share with us: If you know of other stores that have layaway service plans, please share in our comments area. Have you had positive experiences with layaway?