How to Make Layaway Payments

After you make a down payment as part of a layaway program, you'll be expected to make regular layaway payments until you have covered the total purchase price of the merchandise. Specific payment plans vary considerably from store to store, so you'll have to refer to your original agreement with the store, which you should have in writing before you part with even a dime of your money.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Income for making layaway payments

Meet Your Layaway Payment Obligations

1. Avoid making layaway payments using your credit card if at all possible. This defeats the entire purpose of arranging a layaway payment program in the first place.

2. See if the store offers an automatic payment program, in which you authorize the merchant to draw the monthly payments directly out of your checking or savings account.

3. Submit a set of post-dated checks for the merchant to cash when payments come due if the store you're dealing with permits you to do so. This will eliminate the hassle of having to visit the store in person to make your payments in cash.

4. Make absolutely certain you can cover your layaway payments without any problems if you set up an automatic payment system or pre-pay using post-dated checks. Overdrawing your bank account or bouncing checks will result in your financial institution nailing you with prohibitive fees.

5. Call the store well ahead of time if you're going to have any trouble making a pre-arranged payment. A lot of merchants, especially locally owned stores where you've been a longtime customer, will accommodate you if you're facing difficult circumstances, provided you'll be able to make your scheduled payment relatively soon.

6. Visit the store in person and make your payments in cash if you don't want to pre-authorize payments to come out of your bank account.

7. Make additional payments or pay off the remaining balance in full if you find yourself in a position to do so ahead of schedule. This only minimizes the risk to you, and every store that offers a layaway program will be happy to receive payment ahead of schedule.

8. Make your scheduled payments using a debit card or an online account, such as PayPal, if you're using a layaway program with an Internet merchant. Sending checks to a far-off address can result in mail delays, which might cause your payment to reach the merchant behind schedule. In some cases, this can trigger penalties and additional charges as noted in your written layaway agreement.

Tips & Warnings

• If you're facing trouble making a scheduled payment, call the store right away. Some stores will be flexible about these types of issues, but others may impose penalties on you--or outright cancel your layaway agreement.