Apparently CNBC is finding that more and more people are using layaway, and I just don’t get it! I have no recollection of using layaway, but then again I am only 27, and part of the generation where everyone had a credit card! The Simpsons even had an episode where Santa’s Little Helper received a Credit a Card under the name, Santos E. Yelper. Well, we all know how that is sorting itself out now.
Sears Layaway Details
Since I have never used layaway lets review the details from Sears layaway:
- Contract is 8 Weeks
- Biweekly payments necessary
- Not available on every item
- Nonrefundable Service charge of $5
- Down payment is $15 or 20%, whichever is greater
- Customers can receive only one price adjustment on advertised items within fourteen days of the initial layaway date
Granted, Sears provides pretty reasonable “fine print”, but that doesn’t make layaway is a good idea!
Using a High Yield Online Savings Account is a Better Option than Layaway
I am all about ING, one of the reasons is that it allows for multiple accounts. The Wife and I have multiple accounts. Here is a screen shot of my ING Accounts.
Lets take Vacation Fund as an example. Every week the wife and I put in 20 bucks a piece, nothing too crazy (less than a couple of beers on Long Island), but it is our ‘layaway’ for a vacation whenever we decide to take one. My rules and fees? ZERO. My wife’s ING screen is crazy! She has a car account, a baby account, a dog account, and each month she automatically puts some amount I don’t know off hand, right into each “layaway” account. We do it without any fees, and are even earning interest (albeit a low interest rate).
ING Pays You to Set up a Layaway Account
For new accounts ING GIVES you $25 for deposits of $250 or more! Free $25 just for signing up.
$15 or 20%? HA TAKE THAT SEARS. Then you can set up your bi-weekly payment just like you would do to Sears.
Want that $25 from ING? Just Contact My Journey to Millions and I will get you a referral link.
NEVER Do Layaway on Consumer Electronics
Lets say you ignore my advice, and decide to enter into a layaway contract, please do not do it with consumer electronics! Who hasn’t seen a TV you bought drop by $100s in 8 weeks? or that new crazy laptop drop $500 in a 2 month period? So, just promise me…NO LAYAWAY FOR CONSUMER ELECTRONICS