How to Pay For The Holidays

Worried about how you might put those presents 'round the tree this year? You're not alone. With many credit cards maxed out, dollars stretched as tight as they will go, and companies giving less this year instead of more it's easy to see why you are worrying NOW about the holidays. Here is one simple, old fashioned way to pay for the holidays.

Difficulty: Moderate

Instructions

1. 

   During and shortly after the Great Depression, Americans love for "pay in installments" came about with the rise of the layaway system. Now, many companies are seeing 10% increases in layaway sales already and are expecting to see record breaking numbers in the coming weeks. Companies are saying that many customers are laying away because credit cards are maxed out, or they worry about taking additional credit out in case they need it at a later date should things get worse with the economy in the coming months.

2. 

   KMART: This year, Kmart ads will bombard your TV advertising their layaway program. And it's working. Simply select your items, bring them to the layaway counter and begin making payments every two weeks on them. Payments are broken down over an 8 week period of time. Kmart generally charges a $5 contract fee and asks for 10% down at the time of layaway on the total purchase.

3. 

   SEARS: Parent company Sears will begin layaway November 16th. Just put $15 down or 20% of the total purchase to start (whichever is greater) and you have until December 23rd to pay it off. There are plenty of exclusions to their layaway program. If you're thinking of laying away any home electronics, home appliances, computers or automotive equipment think again. However, if you're planning to buy Dad a toolbox this year for Christmas, or a pool table for the family it's a fantastic idea to help pay for Christmas on larger ticket items. (Although I wish they had started this program alittle earlier!) No online layaway is available.

4. 

   BURLINGTON COAT FACTORY: This store is full of discount clothing (and coats), baby items, baby furniture, home decor and toys. And this year they are offering a layaway program to help out this Christmas. The company hopes it will help their 4th quarter profits. A $5 contract fee and 25% down is required at the time of layaway. Layaways can be made 30 days in advance. 90 day layaways are required for large baby depot items.

5. 

   TJX: Stores like TJ Maxx, AJ Wright, and Marshalls will be offering layaway in an effort to boost their sales this year. Nearly all of their AJ Wright stores will offer layaway and select Marshalls and TJ Maxx stores will also offer layaway. No information could be found on any of the stores website regarding their layaway policy.

6. 

   MAX 10: Many of the Max 10 stores will be offering layaway this year. Manager Melissa Spring saw layaway as an opportunity to boost sales and have an advantage over larger stores like Target and Walmart that encourage you to apply and use their store credit cards. Max 10 requires 20% down at the time of layaway and all purchases must be paid for by December 21st. All purchases not paid in full by this date will go back on the shelf. Max 10 specializes in namebrand clothing like Mudd, Ralph Lauren, and Southpole for $10 and under. Stores are located throughout Michigan, Illinois, and Indiana.

7. 

   BIG LOT'S: Big Lot's offers discounted toys, clothing, home decor and furniture. Many Big Lot's offer's a layaway type program on furniture items. Some stores will allow you to layaway other items, but most of the Big Lot's have limited their layaway program to furniture. Big Lot's program varies slightly from a traditional layaway program. There program is called a Price Hold. Only the price is guaranteed for later merchandise pickup (the items are not stored). There is a one time fee of $5.00 plus tax to open a Price Hold. After your first payment is made, the account must be paid off in full within 90 days.

8. 

   LAY-AWAY.COM: This company specializes in internet layaways on mostly electronic equipment. They offer layaways on printers, PDA's, camcorders, portable DVD players, video game consoles, home theaters, computers and appliances. A minimum payment of only $10 is required to start the layaway process. As long as you're making montly payments, your layaway account stays open until the item is paid for. If your item is discontinued, a similar item will be substituted. A fantastic layaway program for hard to find layaway items.

9. 

   LAYMEAWAY.COM: LayMeAway.com is one of a few different online companies offering layaway. While they don't offer as many retailers as the online layaway company listed below, they do offer the ability to shop directly with their merchants and email LayMeAway.com if there is an item you want to put on layaway that isn't listed directly on the LayMeAway.com website. They also offer the ability to accept PayPal and check or money orders. No credit checks are required, and the company does not charge interest on any of the items you purchase.

10. 

    ELAYAWAY.COM: Saving the best for last is eLayaway.com. The site offers a calculator for helping to break down your purchases and how much it will cost you. You can break down your payments from 3 to 13 months. No items purchased will accrue interest, and no credit checks are required. You can shop at over 1000 merchants that do business with eLayaway. This is a great option to buy and is even better for those that are busy and can't make it into a store to make payments.

Tips & Warnings

• Do you know of any other large chain companies offering layaway this holiday season? Add it under the comments list!
• Some of these stores listed only offer layaway in select areas. However, the stores listed here are all larger chain stores, not individual stores or stores located only in one area.

Resources

• Burlington Coat Factory Layaway Policies
• Kmart Layaway Policy
• eLayaway.com
• Max 10 Stores
• LayMeAway.com
• Lay-Away.com
• Sears Layaway

[shawnee50]

on 12/17/2008 Great info the only one I new about was Kmart thanks for the good info.

[yourmamasaidwha]

on 12/6/2008 great info! this has a lot of useful info for more than just the holidays...we have quite a few kids runnin' around here, and one on the way...layaway sounds like a great idea!

[marian1936]

on 12/2/2008 I like Womanifest's ideas. We know Christmas is coming. It always does. Make the list right away and shop all year. Christmas shouldn't be about spending money we don't have. It should be about surprises and smiles. Living within our means is a great achievement. Ask yourself what recipient would want a gift that put you into financial discomfort. If they want you to go into debt to buy their gift, they're not worthy of the gift. Remember, if you outgo exceeds your income, then your upkeep will be your downfall.

[sharishops]

on 11/19/2008 Great idea! I suspect the big ones will continue the layaway idea if it's successful in attracting more customers this holiday season.

[womanifest]

on 11/18/2008 Last year I did what I do every year,when shopping for my brother and his wife and four kids.I woke up on January 2 and made my way to Long's Drugs,where promotional items are 75% to 90% off the original price.Turns out it's cheaper for them to discount promo items than to send them back.Last year I bought $100 worth of Galileo themometers for $10. I bought a $100 turntable stereo for $25. I bought sweatshirts for $2 each, in sizes too large(then)for my niece and nephews.I also shop at Tuesday Morning.This year, my family gets over $200 worth of excellent gifts for under $30.He'll never figure out how I do this year after year. ;)