American Consumer News » lay-away http://www.americanconsumernews.com News for Consumers in Changing Times Tue, 31 Jan 2012 21:06:28 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Lay-away Programs – Boone or Bane for Consumers http://www.americanconsumernews.com/2009/10/lay-away-programs-%e2%80%93-boone-or-bane-for-consumers.html http://www.americanconsumernews.com/2009/10/lay-away-programs-%e2%80%93-boone-or-bane-for-consumers.html#comments Tue, 20 Oct 2009 19:48:23 +0000 trisha http://www.americanconsumernews.com/?p=3267 Lay-away Programs – Boone or Bane for Consumers was created by and is property of American Consumer News.

]]> According to a report on Fox News Business on Oct. 19th; retailers are apparently offering aggressive lay-away programs fortoys r us the upcoming Christmas selling season.  The primary focus of the report centered on Toys-R-Us and Babies-R-Us. These organizations are extending lay-aways options for those interested in purchasing higher ticket toys. Shopping for children during the Christmas season can be notoriously expensive, with many people choosing to go in debt versus allow their children to go without these priced possessions. Using law-away gives parents the opportunity to plan for these expenses in the household budget.

 

The following provisions should be considered before using the lay-away option:

  • An additional charge and service fee is part of the agreement. (Toys-R-Us = $10)

  • The state retail tax must be paid at the time of initiation of the lay-away.

  • An initial down payment of 20% is generally required.

  • Installments must be made on a timely and specified regular basis.

  • A specified date of payment completion is required.

  • Partial loss of monies already paid can be forfeited in the event of refund or cancellation.

 

All and all, these programs can in actuality have a downside if consumers fail to pay cash and opt to use credit cards to make lay-away payments. In that case, consumers could be looking at the possibility of paying a 20% – 30% premium on those items verses simply waiting for promotional discounts and sales.

 

Various retailers will be creative and attempting all sorts of inducements to encourage consumers to purchase presents right now. That is what retailing is about. Programs will be offered as time moves on and the possibility of negotiation does exist. Keep in mind, the retailer has a specified time limit to successfully achieve their goals as well. That is their motivator.

 

The love and the desire to express that love through a specific gift is a constant for every parent or relative. Choices are not easy when weighing that recognition and hope for the registered joy on a child’s face. Regrettably that is the psychology behind retailing efforts during Christmas.

 

As a consumer, we all must keep in mind the bigger picture in terms of finances. Before you begin your holiday shopping, consider what your family can comfortably afford this holiday season and shop accordingly. If you use a bit of planning and common sense it is possible to buy presents that your children will love without breaking your budget.

Lay-away Programs – Boone or Bane for Consumers was created by and is property of American Consumer News.

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