The holiday season is fast approaching. The year has been bad for everyone since the COVID 19 pandemic stalled businesses across the world. With masses of consumers on minimum wages and others being laid off, holiday shopping will be affected this year. People are not planning massive holiday parties and gifting that have usually been the norm. Retailers have tried to meet shoppers halfway by reviving layaway plans.
Major stores such as Walmart are now offering layaway to help shoppers get their holiday shopping. For parents who have never used layaway, here is how it works.
What Is Walmart's Layaway?
Walmart layaway is a shopping plan that helps shoppers to get their desired items using installment billing plans. Instead of the usual credit card or cash payments, the shopper uses installments to pay for their shopping. The shopping stays at the store until the shopper has paid the last installment then they can collect.
How Does Walmart Layaway Work?
For most items, you go through a four-step process. First, you verify whether the item you want to buy is under the layaway plan. Most gift items are in the plan. You make the recommended down payment. Some stores let you choose a deposit, while others give you a percentage of the full price.
You pay in small installments over time. You can pay weekly, or monthly depending on the item and the store policy. Once you pay all the installments, you can then go and pick your shopping.
What’s The Advantage Of A Layaway Plan?
For parents struggling to gift their children this year, a layaway plan is good. Layaway interests are less than credit card interests. You have more buying options. It is softer on the pocket when you pay for items over a long time. It saves you from the hassle of holiday shopping. Unlike credit cards, you don’t have to have good credit history for layaway plans.
The requirements for layaway plans are a bit lenient. Even people with poor credit scores can purchase items using layaway. Layaway plans are an easy way of ensuring that you purchase a high – demand item. You can even involve your kids in the purchase to teach them good spending habits.
What Are The Disadvantages?
Every plan comes with advantages and disadvantages. One of the downsides of a layaway plan is that it attracts extra fees. Walmart layaway plans have service fees. Service fees are small fees that pay for keeping the items off the shelves for you.
You also attract cancellation fees if you are unable to make all the payments. Sometimes you attract restocking fees if you don’t finish your installments by the agreed due date. It is also important to note that layaway plans are not available for all items. Walmart has put a limit on the type of items that you can purchase on layaway.
The layaway plans from Walmart are also in-store meaning you have to physically go to the store to make payments. Mostly the items on layaway include jewelry, toys, electronics, and other gift items. To understand more about this, you have to walk into Walmart and get more information.
Sources: moneycrashers.com, custhelp.com, corporatefinanceinstitute.com