Remember Layaway? It's Back -- Here's Why You Should Care

Don't laugh. Layaway is not just something your Aunt Gertrude did at Montgomery Ward to buy a Frigidaire. This classic payment plan is coming back in style, and more and more stores are dusting off their policies in time for the holiday season.

How Does Layaway Work Again?

You put a down payment on an item -- usually 10 to 20 percent. You make regular payments on it over one to three months (or longer for big-ticket items). You take it home when you've paid it off.

Why Not Just Use My Card?

The obvious answer is: no interest charges dragging you down for months. Although you do pay a layaway fee (usually about $5), you pay it once and you're done.

And because you don't get to take the thing home until you've paid in full, layaway puts the buying cycle on hold for a while -- which isn't a bad thing for people who have trouble with out-of-control spending.

More Reasons to Love Layaway

Of course you could simply set funds aside for holiday gifts or expensive things, but as one shopper explained in the New York Times, that money can get eaten up by unexpected expenses. If you know what you want, layaway is like a safe savings account.

Keeping holiday gifts in the store means less clutter in our homes and less danger of toys being discovered by little curious Georges, point out parents in 4 Surprising Benefits of Layaway at CafeMom. Shopping early when selection is the greatest was another plus mentioned. Some stores even offer price-matching programs if an item goes on sale while you have it on layaway.

Layaway puts into practice the principle of delayed gratification. Being able to wait for something that we really want is especially tough in our fast-paced, easy-credit society. Layaway feels old-fashioned, but if it helps us live within our means, this plan to harness our power of will can equal peace of mind.

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