A layaway is a reserve account where you store your merchandise until you are ready to purchase it. Most credit unions and banks offer layaways for their customers. Since most banks pay interest on the money in their lay-bys, it makes sense to keep your money in one. Here are some tips to help you make the most of your layaway.
Manage your finances
There are certain purchases that are considered a necessity and we might not always have a budget for it. Fortunately, layaways or a lay buy could help us manage our finances without having to spend our savings or get a loan. This is a cost-effective way of managing our finances without having to sacrifice the essential purchases.
With layaways, it is also much cheaper making the recurring payment rather than getting the purchase using a credit card that will make you pay for the item more than its original price because of the service charges and the interest, especially if you could only afford to pay for the minimum amount due every month.
Managing your finances with layaways is also easier because you could start them early enough so that you would have paid for the item by the time you needed it. For example, you could do your Christmas shopping with layaways and by the time December rolls in, you have already paid for your Christmas gifts.
Major purchases could be planned
Layaways could be planned for major purchases, which is necessary so your budget will not be out of whack. It would also be easier for you to make payments on a monthly basis since the total price has already been divided into inexpensive, more affordable amounts.
Layaway agreements usually run between three and six months, but it could also last longer depending on the store and the price of the product that you are purchasing. So, depending on your budget and your ability to pay for the next couple of months, you could plan ahead your major purchases.
You would not need to risk anything
Layaways are more affordable and less risky than other buy-now, pay-later deals. How so? With layaways, there is no chance that you will be charged with interest and cancelling your order is easier and stress free since the product is still not in your possession. However, you might lose the service fee and you might have to pay cancellation fees. But if you are definitely sure with the intended purchase, availing yourself of it by layaway, is risk free.
In conclusion, layaways are advantageous as long as you are disciplined in making the payments and you have a source of money to pay for the items in the succeeding months. It is also necessary that before you sign the agreement and before you pay the deposit, you have read the entire contract and that you agree to all of its terms. Make sure also that you keep all the payment receipts and a copy of the contract in your possession for your reference.