Comments on: Alternative to Credit Cards: Layaway Programs http://www.consumerismcommentary.com/2008/10/30/alternative-to-credit-cards-layaway-programs/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Emily http://www.consumerismcommentary.com/2008/10/30/alternative-to-credit-cards-layaway-programs/#comment-185235 Emily Sat, 01 Nov 2008 21:34:55 +0000 http://www.consumerismcommentary.com/?p=4412#comment-185235 It's interesting that layaways are making a comeback. It worries me, though -- one of the main reasons why we're dealing with this economic crisis is because people lived above their means and spent money they didn't have on credit (or a mortgage) and then realized they couldn't pay it off. I feel like people could go into a layaway with the same attitude -- that it's OK to buy things you can't afford, because you can just pay it off later. But perhaps it is safer than a credit card with a crazy high interest rate....I just think there needs to be more focus on saving money rather than spending first and paying off later. It’s interesting that layaways are making a comeback. It worries me, though — one of the main reasons why we’re dealing with this economic crisis is because people lived above their means and spent money they didn’t have on credit (or a mortgage) and then realized they couldn’t pay it off. I feel like people could go into a layaway with the same attitude — that it’s OK to buy things you can’t afford, because you can just pay it off later. But perhaps it is safer than a credit card with a crazy high interest rate….I just think there needs to be more focus on saving money rather than spending first and paying off later.

]]> By: shadox http://www.consumerismcommentary.com/2008/10/30/alternative-to-credit-cards-layaway-programs/#comment-185223 shadox Sat, 01 Nov 2008 18:27:21 +0000 http://www.consumerismcommentary.com/?p=4412#comment-185223 well, it's certainly better than accruing debt for consumer purchases - but isn't this a major hassle? Why not just save the money in the bank until you have enough for the purchase? Save the lay away program participation fee, earn some interest on your savings, save the hassle of weekly payments... that is unless the item you are purchasing is in short supply and you are worried about it not being in stock later. well, it’s certainly better than accruing debt for consumer purchases – but isn’t this a major hassle? Why not just save the money in the bank until you have enough for the purchase? Save the lay away program participation fee, earn some interest on your savings, save the hassle of weekly payments… that is unless the item you are purchasing is in short supply and you are worried about it not being in stock later.

]]> By: Miss M http://www.consumerismcommentary.com/2008/10/30/alternative-to-credit-cards-layaway-programs/#comment-185144 Miss M Fri, 31 Oct 2008 22:20:07 +0000 http://www.consumerismcommentary.com/?p=4412#comment-185144 There was a wall st journal article on the return of layaway last week, can't seem to find the link right now. I thought layaway was dead, it was on its last legs when I was a kid. They think it will become more popular as credit cards become harder to get and Kmart is really banking on it for the holidays. I call it credit without the instant gratification. There was a wall st journal article on the return of layaway last week, can’t seem to find the link right now. I thought layaway was dead, it was on its last legs when I was a kid. They think it will become more popular as credit cards become harder to get and Kmart is really banking on it for the holidays. I call it credit without the instant gratification.

]]> By: Evan http://www.consumerismcommentary.com/2008/10/30/alternative-to-credit-cards-layaway-programs/#comment-185115 Evan Fri, 31 Oct 2008 15:55:21 +0000 http://www.consumerismcommentary.com/?p=4412#comment-185115 I don't get the trend...couldn't this same person set up a high yield savings account, pay NO fees, and then just buy the item outright later on? I just did this for a vacation for the wife and I...I figured out the weekly payments and we just saved X amount per week for X weeks and when the bill is due in Nov. we will pay it...and caught some interest along the way. I don’t get the trend…couldn’t this same person set up a high yield savings account, pay NO fees, and then just buy the item outright later on? I just did this for a vacation for the wife and I…I figured out the weekly payments and we just saved X amount per week for X weeks and when the bill is due in Nov. we will pay it…and caught some interest along the way.

]]> By: Raj http://www.consumerismcommentary.com/2008/10/30/alternative-to-credit-cards-layaway-programs/#comment-185059 Raj Fri, 31 Oct 2008 00:25:36 +0000 http://www.consumerismcommentary.com/?p=4412#comment-185059 Thanks for bringing up this latest trend in the midst of our economic crisis. I agree with you that layaway can be a sensible choice, especially when the alternative is to rack up credit card debt that cannot be repaid. I was wondering about your thoughts on stepping back even further from the problem and looking at shopping habits in the run-up to the Christmas season. At my work we’re trying to design a product that effectively gets people out of debt and many are concerned with teaching the right values to their kids at a time like this. Should children be taught about layaway and its place in responsible money management, or does that spoil the holiday fun for the kids? All the best, Raj Patel GoalSpring Thanks for bringing up this latest trend in the midst of our economic crisis. I agree with you that layaway can be a sensible choice, especially when the alternative is to rack up credit card debt that cannot be repaid. I was wondering about your thoughts on stepping back even further from the problem and looking at shopping habits in the run-up to the Christmas season. At my work we’re trying to design a product that effectively gets people out of debt and many are concerned with teaching the right values to their kids at a time like this. Should children be taught about layaway and its place in responsible money management, or does that spoil the holiday fun for the kids?

All the best,

Raj Patel
GoalSpring

]]> By: Ellen http://www.consumerismcommentary.com/2008/10/30/alternative-to-credit-cards-layaway-programs/#comment-185050 Ellen Thu, 30 Oct 2008 17:08:16 +0000 http://www.consumerismcommentary.com/?p=4412#comment-185050 I've seen the K-Mart layaway program ads for the past few weeks. I thought it was really interesting, and actually had a friend ask me what layaway is. Clearly people are looking for alternatives to credit cards with the current crisis. I’ve seen the K-Mart layaway program ads for the past few weeks. I thought it was really interesting, and actually had a friend ask me what layaway is. Clearly people are looking for alternatives to credit cards with the current crisis.

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