The pros and cons of layaway - Dallas News | myFOXdfw.com

The pros and cons of layaway

Posted: Updated:
MABLETON, Ga. -

It's a practice with its roots in the Depression, but the current economic crisis has layaway making a comeback. Is it the best way to make purchases?

Mableton shopper Brenda Pressley is on a mission at K-Mart. She's shopping for Christmas presents, and instead of checking out at K-Mart's register, she heads to the Layaway Department.

"Layaway was fairly popular until about two decades ago, and then with the aggressiveness of unsecured credit cards, really layaway started going away in lieu of unsecured credit cards," said John Ulzheimer of Smartcredit.com.

"We have apparel. We have electronics, toys. There's really not a lot of restrictions on our layaway as some of the retailers have," said Bill Bonsor of K-Mart.

At K-Mart, layaway never left. But other big box retailers stopped offering it. But in the wake of the recession, customers and retailers are again in love with layaway. Ulzheimer says for many it's the best option.

"The fee that you're going to pay is usually fairly low, maybe $5. They're calling it kind of a convenience fee to set up the paperwork to do the layaway. That's much, much less expensive than you're going to pay if you charged on a retail store credit card and paid between 20 and 25 percent interest," said Ulzheimer.

Pressley says she uses layaway because of convenience.

"That way you don't have to hide it at home, or wrap it up. Just get it right before Christmas," said Pressley.

If you're trying to build good credit, layaway might not be much help. Layaway payments aren't reported to the credit bureau.

"If you are a responsible credit card user and you're not revolving a balance every month and paying interest, that's still probably the best way to do it. But the layaway is pretty decent option because of no interest, and you're likely to pay less for it over time," said Ulzheimer.

Nearly all major retailers are now offering layaway. K-Mart has waived the layaway service fee until November 17. K-Mart is also the only mass retailer to also allow layaway online.

  • Good Day ArchiveMore>>

  • Back to School Jamboree with Hosea Feed The Hungry

    Back to School Jamboree with Hosea Feed The Hungry

    Hosea Feed the Hungry will host their annual Back to School Jamboree on Sunday, July 13, 2014 from 10:00 a.m. until 3:00 p.m. at Turner Field. Children will receive a backpack filled with school supplies.

    Hosea Feed the Hungry will host their annual Back to School Jamboree on Sunday, July 13, 2014 from 10:00 a.m. until 3:00 p.m. at Turner Field. Children will receive a backpack filled with school supplies.

  • Big E celebration comes to North Georgia

    Big E celebration comes to North Georgia

    Wednesday, July 30 2014 9:40 AM EDT2014-07-30 13:40:00 GMT
    You know what the "Big E" is, right? Elvis! And the King is being celebrated in North Georgia this weekend! The 11th Annual Big E Fest and ETA Competition happens this weekend in Cornelia, GA.
    You know what the "Big E" is, right? Elvis! And the King is being celebrated in North Georgia this weekend! The 11th Annual Big E Fest and ETA Competition happens this weekend in Cornelia, GA.
  • Does social media make you spend more money?

    Does social media make you spend more money?

    Wednesday, July 30 2014 8:49 AM EDT2014-07-30 12:49:39 GMT
    The notion of 'Keeping up with the Jones' is not new, but there is a new pressure coming at you. Peer pressure - whether you're 13 or 33 - is a powerful thing. Now throw in social media and you have what an Atlanta counselor calls 'Keeping up with the Jones' on steroids. And if you're not careful that can get costly.
    The notion of 'Keeping up with the Jones' is not new, but there is a new pressure coming at you. Peer pressure - whether you're 13 or 33 - is a powerful thing. Now throw in social media and you have what an Atlanta counselor calls 'Keeping up with the Jones' on steroids. And if you're not careful that can get costly.
Powered by WorldNow

KDFW FOX 4
400 N. Griffin Street
Dallas, Texas 75202

Main Station Directory:
(214) 720-4444
News Fax:
(214) 720-3263 or (214) 720-3333

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices