Timeline for How can I buy things with monthly payments in the US?
Current License: CC BY-SA 4.0
19 events
| when toggle format | what | by | license | comment | |
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| Jun 23, 2021 at 20:22 | comment | added | Flydog57 | I've never used Layaway, but it was developed as a mechanism to allow folks who live paycheck-to-paycheck to have a way of buying big things without blowing the bank. I'm old (in my 60s). When I was a kid, there was a push at back-to-school time to pick out your kids' Christmas gifts and buy them on layaway. It was a way for retailers to sell more stuff to people who couldn't afford to pay for them all at once. There are lots of scams that take advantage of folks without money, but, at least traditionally, layaway wasn't in that category. | |
| Jun 22, 2021 at 14:37 | comment | added | MonkeyZeus | @ChrisH You can read Walmart's specific terms here walmart.com/cp/layaway/1088466 and I'm sure they'd give you a booklet with fine print if you actually initiate layaway. If they demanded full payment immediately then many customers would likely opt to just cancel and live with the cancellation fee. I think a huge chain like Walmart would probably offer financing through a 3rd party. If Walmart didn't behave amicably then lawyers would have a field day. Maintaining poise is in the company's best interest or else their bankruptcy will get a whole lot more expensive. | |
| Jun 22, 2021 at 14:20 | comment | added | Chris H | @MonkeyZeus fair enough; here it's variable. Our corporate bankruptcy laws are quite different. Still if the full balance became due or lose what you've already paid, that could be bad, but it's academic from my point of view, as I'd avoid it even if available. Thanks for explaining. | |
| Jun 22, 2021 at 14:16 | comment | added | MonkeyZeus | @ChrisH On this side of the Atlantic you are able to use your gift cards right up until the store's final day of operation; large chains can take months to close. One would assume that layaway items need to be settled before the final day as well. It's very difficult to be unaware that a store is closing soon if you're making payments on one of their items. | |
| Jun 22, 2021 at 14:06 | comment | added | Chris H | @MonkeyZeus I was asking about layaway as it's new to me. Of course there may be legal protection of customers' money but I suspect that when a company goes out of business is too late for them to act responsibly. The time to look after other people's money is when the company takes it, not when the creditors are out for all they can get. The bit about gift cards mostly explains where I'm coming from. | |
| Jun 22, 2021 at 14:06 | comment | added | Mooing Duck | "And some stores charge some interest as they are essentially extending you credit and holding product for you." That's evil. In truth, you're loaning them money. Logically, you should be charging them interest. :( | |
| Jun 22, 2021 at 13:37 | comment | added | MonkeyZeus | @ChrisH So what are you asking about exactly: layaway terms? gift card terms? which businesses act responsibly versus irresponsibly when they go out of business? how do store-branded credit cards work? why do stores love selling gift cards? | |
| Jun 22, 2021 at 13:28 | comment | added | Chris H | ... It's not my sort of thing TBH, but that's partly because I can afford to save and have modest tastes (several credit cards cleared in full every month, no debt except mortgage, I even avoid subscription services...). It sounds risky anyway | |
| Jun 22, 2021 at 13:27 | comment | added | Chris H | @MonkeyZeus I'm the other side of the Atlantic, where it doesn't exist, but credit terms on goods are quite common (some interest free funded by marked-up prices, some at extortionate rates, and lots in between). So I'm mainly curious about the risks. We've had some big retailers fail over the last few years, and more with covid. A common theme is that gift card balances are unsecured debt and lost. These balances can be quite large, and may be used as a way of saving for an item by topping up until there's enough on the card - similar to layaway but not against a particular item | |
| Jun 22, 2021 at 13:10 | comment | added | MonkeyZeus | @ChrisH Regardless of this conjecture, read your layaway contract before signing since it will outline your responsibilities along with the store's. If you feel you got screwed during a store closing then read your contract again to make sure you understood it because a lawyer isn't really going to care about the $500 T.V. that someone couldn't afford unless the store systematically reneged people's layaway contracts. | |
| Jun 22, 2021 at 13:06 | comment | added | MonkeyZeus | @ChrisH I've never used layaway but my understanding is that the items gets physically reserved so it's not like they would liquidate their unpaid layaway stock without settling things with the debtors first. | |
| Jun 22, 2021 at 13:04 | comment | added | MonkeyZeus | @ChrisH Are you assuming a responsible or irresponsible business? Stores don't generally shut down and pack up overnight and if they do then they were probably not big enough to offer layaway. The customer would likely be contacted and offered the chance to pay off and receive the item. They would rather have this person buy the item since the alternative is to sell it at a liquidated price. If the customer declines to buy out the item then the store might just give it to them if the liquidated price is forecasted to be lower than the 90% already paid. | |
| Jun 22, 2021 at 12:36 | comment | added | Chris H | I reckon I can guess, but with layaway, what happens if the store goes out of business when you've paid for 90% of an item you haven't received? | |
| Jun 21, 2021 at 19:40 | comment | added | R.. GitHub STOP HELPING ICE | Layaway is completely a scam built on a (false) FOMO (fear of missing out). You don't get anything at all for the fees you pay and risk of them keeping your money if you fail to keep paying. | |
| Jun 21, 2021 at 17:26 | history | edited | sevensevens | CC BY-SA 4.0 |
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| Jun 21, 2021 at 17:17 | history | edited | sevensevens | CC BY-SA 4.0 |
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| Jun 21, 2021 at 16:54 | comment | added | sevensevens | @MonkeyZeus - You're right. Your better off just saving the money yourself and paying cash-in-hand. Even if layaway is free, saving it yourself means you'll get a newer product, and there is 0 risk of being charged fees or losing your layaway deposits. | |
| Jun 21, 2021 at 16:24 | comment | added | MonkeyZeus | I think it's worth noting that layaway isn't usually free. You pay a fee to set it up and could pay additional fees if you do not finish paying for the item. If you have a hard time controlling your spending habits then this could be a good way to commit to a purchase but realistically you should just set your money aside and pay in full at a future date. A future date has the benefit of buying that latest model which is important for a commodity such as a T.V. I am 99% sure Wal-Mart only offers layaway during the holiday season by the way. | |
| Jun 21, 2021 at 13:55 | history | answered | sevensevens | CC BY-SA 4.0 |