Monday, April 15, 2024

Lay It Away Payment Plan Explained

layaway online

Since the economy has been affected globally, merchants and sellers have come up with various strategies to alleviate the financial burden of the consumers and with them not going out of business because of the lack of customers. One of these strategies is offering a lay it away payment.

If you are unfamiliar with this payment plan that has been a lifesaver for those who are in need of an expensive item but did not have the financial resources to pay for it in full, read below to fully understand how this payment scheme works and if you will benefit from it.

Not all stores have a lay it away payment scheme

Not all stores offer the lay it away payment plan and not all of the store’s products could be purchased using this payment scheme. In order to fully understand the terms and conditions of this scheme since it may vary from store to store or product to product, check first with the store’s lay it away department.

Some stores even process application for layaway online. At least with this, you would be informed of the terms and conditions without having to visit the physical store and realizing that the store’s payment scheme is not suitable to your budget.

layaway online
Image Source: Pexels

You need to pay some fees

Of course, with every other payment plan, there would be some processing fees included. First, you need to pay for the product or item’s deposit which is typically 10% of the item’s full price. So, before applying for the plan, calculate the 10% and see if you have the amount to reserve the item. As for the processing fee, this is usually a minimal amount only but check to see beforehand to make sure that your money is enough.

You could choose the length of your plan

You would have the option to pay weekly, biweekly or monthly. The plan will not last longer than a year since this payment scheme is considered to be a short-term payment plan only. Whatever you choose, make sure that you have already incorporated it in your budget to avoid struggling with the payment. If you receive your salary every end of the month, you’d be better off paying for the item monthly. But if you are getting paid weekly, then you could choose the weekly plan to make paying for the item simpler.

You could only take the item home once your balance is $0

This is obviously the case but don’t expect that you could cajole the merchant into giving you the product before you made the last payment even if you have been a good client and there are no delays in your payment. Once your balance is $0, you are legally and officially the owner of the item you have been paying for.

This payment scheme has its merits but still, it is better if you read the fine print of the contract before you agree. Make sure a policy is included about returns and what would happen if and when the establishment goes out of business while you are still paying for the item.