In a perfect financial world, every family would save for the holiday season throughout the year and have enough cash available come November and December to pay for their holiday purchases. Since this is far from a perfect financial world, many of us come to rely on our credit cards to get us through the expense of the holiday months.
Walmart no longer offers Layaway programs (as of 2006), but an increasing number of stores have a layaway program that helps you pay for your holiday purchases without racking up hundreds of dollars (or more) in interest rates and finance charges paid over the next year… or two… or more.
Kmart, TJ Maxx, Burlington Coat Factory and Marshalls all have in-store Layaway programs. Basically, you select the items you wish to buy and the store will place your items in storage. Most charge a percentage of the total up front, and allow you to make payments weekly or bi-weekly until it’s paid in full. Some will also require you to pay a $5 or $10 fee for the service - but when compared to a 10% or higher interest rate on a credit card (month after month until you pay off the balance) you can see how this would save you money.
If you don’t want to shop at these stores, try the online version of a layaway program: http://www.elayaway.com/
If the holidays cause you to overspend on your credit cards, try doing the bulk of your shopping now- in a store with a layaway program - and not only will you save money in interest fees - you’ll be forced to have the purchases paid for in full by the holiday in order to get them rather than allowing yourself to pay the minimum payment for months on end. ?
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