Comments on: Layaway Pros and Cons http://financialhighway.com/layaway-pros-and-cons/ Personal finance blog discussing investments, savings, insurance and financial planning ideas to grow wealth Tue, 22 May 2012 06:20:41 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Airlines overbooking, big houses and options rights http://financialhighway.com/layaway-pros-and-cons/#comment-2215 Airlines overbooking, big houses and options rights Sun, 03 Jan 2010 01:43:20 +0000 http://financialhighway.com/?p=3383#comment-2215 [...] Layaway pros and cons @ Financial Highway [...] [...] Layaway pros and cons @ Financial Highway [...]

]]> By: Joshua Hester http://financialhighway.com/layaway-pros-and-cons/#comment-2150 Joshua Hester Sat, 26 Dec 2009 21:13:57 +0000 http://financialhighway.com/?p=3383#comment-2150 I have worked at a retail store for 6 years, I sell simmons and Spring Air mattresses. My six years here, I have probally had 6 out of 10 customers actually pay-off their layaways each month. Even though the 4 of of 10 customers money is pure-profit to our store, it upsets me greatly. If you can't wait long enough to save and then buy, you really cannot afford it. Maybe mattresses are a little different than like a walmart item or elsewhere, because typically they range from $200 to $8,000. However too many people lose money becuase they do not invest in themselves instead of a stores wallet. If you hold the money yourself, then if an emergancy comes up you have it, however most stores charge a fee to cancel and some do not refund layaways at all. SO PLEASE DO NOT LAYAWAY. I have worked at a retail store for 6 years, I sell simmons and Spring Air mattresses. My six years here, I have probally had 6 out of 10 customers actually pay-off their layaways each month. Even though the 4 of of 10 customers money is pure-profit to our store, it upsets me greatly. If you can’t wait long enough to save and then buy, you really cannot afford it. Maybe mattresses are a little different than like a walmart item or elsewhere, because typically they range from $200 to $8,000. However too many people lose money becuase they do not invest in themselves instead of a stores wallet. If you hold the money yourself, then if an emergancy comes up you have it, however most stores charge a fee to cancel and some do not refund layaways at all. SO PLEASE DO NOT LAYAWAY.

]]> By: OutofStock http://financialhighway.com/layaway-pros-and-cons/#comment-2137 OutofStock Wed, 23 Dec 2009 16:30:12 +0000 http://financialhighway.com/?p=3383#comment-2137 Why not use the "reverse lay-away plan"? Save up your money until you have exactly what you need to make the purchase, then go buy it! If you don't have enough to pay cash for it, you CAN'T AFFORD IT! Why not use the “reverse lay-away plan”? Save up your money until you have exactly what you need to make the purchase, then go buy it! If you don’t have enough to pay cash for it, you CAN’T AFFORD IT!

]]> By: Ray http://financialhighway.com/layaway-pros-and-cons/#comment-2130 Ray Wed, 23 Dec 2009 01:26:49 +0000 http://financialhighway.com/?p=3383#comment-2130 @Daniel....that is a good point....if you really want something just save up and hopefully you'll be able to purchase it. @Craig very true that layaway CAN develop bad shopping habits @Matt never thought about gaining more appreciation for the purchase and it makes sense since you'll be working towards it you typically will value it more. Rather than just using plastic for it. @Daniel….that is a good point….if you really want something just save up and hopefully you’ll be able to purchase it.

@Craig very true that layaway CAN develop bad shopping habits

@Matt never thought about gaining more appreciation for the purchase and it makes sense since you’ll be working towards it you typically will value it more. Rather than just using plastic for it.

]]> By: Matt Jabs http://financialhighway.com/layaway-pros-and-cons/#comment-2120 Matt Jabs Tue, 22 Dec 2009 18:40:20 +0000 http://financialhighway.com/?p=3383#comment-2120 Ha ha, great topic. As an experiment I put my Carhartt coat on layaway back in November because I did not have enough to cover it in that months cash envelopes, and because there were no layaway fees where I purchased it. Come December, when my clothing cash envelope was filled anew, I went and picked up my coat. A few cool benefits of layaway that I noticed, which you mentioned: 1. delaying the purchase gives you extra time to think about your purchase to better decide if it is indeed something you need to buy. 2. no fees, no supporting credit card banks. One thing I would like to add is how I gained more appreciate for the purchase since it was something I labored over and waited for across a two month period rather than just instant gratification from the split second of the purchase itself. Ha ha, great topic.

As an experiment I put my Carhartt coat on layaway back in November because I did not have enough to cover it in that months cash envelopes, and because there were no layaway fees where I purchased it. Come December, when my clothing cash envelope was filled anew, I went and picked up my coat.

A few cool benefits of layaway that I noticed, which you mentioned:

1. delaying the purchase gives you extra time to think about your purchase to better decide if it is indeed something you need to buy.
2. no fees, no supporting credit card banks.

One thing I would like to add is how I gained more appreciate for the purchase since it was something I labored over and waited for across a two month period rather than just instant gratification from the split second of the purchase itself.

]]> By: Craig http://financialhighway.com/layaway-pros-and-cons/#comment-2117 Craig Tue, 22 Dec 2009 16:53:06 +0000 http://financialhighway.com/?p=3383#comment-2117 It seems like layaway is coming back into fashion lately. I am surprised to why with the times still bad. Save up and pay in full if you want something, layaway just can develop bad shopping habits. It seems like layaway is coming back into fashion lately. I am surprised to why with the times still bad. Save up and pay in full if you want something, layaway just can develop bad shopping habits.

]]> By: Daniel http://financialhighway.com/layaway-pros-and-cons/#comment-2114 Daniel Tue, 22 Dec 2009 13:20:52 +0000 http://financialhighway.com/?p=3383#comment-2114 The cons you listed greatly outweigh the pros. I agree that if you can't afford it, you probably shouldn't be buying it. This sems like a way of avoiding getting your financial life together. Once you make the major adjustments, you won't have to worry about spreading your costs out. If you plan ahead, you'll save up the money and avoid all of the risks. Then, come November (or August if you start now), you'll have a nice little gift fund that you'll be able to use on anything you want without having to worry about making payments and extra fees. The cons you listed greatly outweigh the pros. I agree that if you can’t afford it, you probably shouldn’t be buying it. This sems like a way of avoiding getting your financial life together. Once you make the major adjustments, you won’t have to worry about spreading your costs out. If you plan ahead, you’ll save up the money and avoid all of the risks. Then, come November (or August if you start now), you’ll have a nice little gift fund that you’ll be able to use on anything you want without having to worry about making payments and extra fees.

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