Avoid These 3 Layaway Mistakes: Protect Your Savings

Layaway sounds like a good idea, and for most people it is. Shop and lock in today's price, and make payments for a few weeks or months until it's time for the occasion. Great, right? It is, as long as you avoid these three habits:

Getting Too Much

Many people think that because it's layaway and they are making payments, it doesn't matter how much the final bill total is. However, payments are for a short, fixed amount of time and if you can't have it paid in full in time, then you're in trouble. Don't justify the purchase with "Oh, it's going on layaway! I can handle it."

Missing Payments

Missing payments may cause you to run into additional fees or lose the items all together, depending on the store's policy. Make sure you make all payments on time and if you cannot, make sure you understand what's going to happen as a result.

Deciding Not to Get Layaway

While most of the time you will be able to get a refund, chances are you will be paying a certain percentage (usually 10 to 20%) restocking fee. This means you're losing money just because someone has to go back and get all your stuff to put it back on the shelves. While it's a great money maker for the companies that offer layaway, it's a deadly layaway habit for you.