1-800-WAL-MART (Vanity)

[Nothometoday]

I am hoping for some help here. As most of us know, Wal-Mart is "the" local store for purchasing items. Things like school clothes, furniture and electronics can become very expensive, and take time to pay off.

Most stores have a lay away policy. I am a single parent and have purchased many items in this manner.

However, I found out today that Wal-mart is ending lay-away after Christmas.

This bugs me, I was hoping for some support from FReepers who have been there, Done that, and know Lay away can help many families.

I am asking you to either call Wal Mart and voice your opinion, or write to walmart.com with any suggestions.

I feel this is a poor policy, that will hurt many families.

Thank you for reading my post.

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So, layaway plans charge interest?

Yes. And monetary penalties if you cancel your lay away.

I suspect few layaway plans operate the way you describe.

Then you're not familiar with the lay away plan as I suspected.

then why does it make sense for the store to do so, and end up with used merchandise on its hands?

Why are there repossessions of cars and foreclosures on homes, they end up with used merchandise on their hands.

[Gondring]

Your explanation of layaway differs from how I've seen it enacted, as well as this story about it (including for Wal-Mart). It says:

Layaway shoppers put down a deposit and make payments but don't pick up the goods until they have paid in full.

A woman shopping at Wal-Mart is quoted in the story:

A woman in the story says: "I love layaway because I'm not paying any interest," said Bennett, 34. "If I put this on a credit card, I'd still be paying next Christmas."

But heck, let's go with your assumption that there's interest....In that case, explain to me why it makes sense to pay interest on money without receiving the item immediately, instead of putting the money into an interest-bearing account or shopping card, or whatever means you want of saving it. It could be direct-deposited into an account from paychecks, even, in many cases.

Plus, if you don't pay off, there's often a service fee.

If Ms. Bennett paid down her credit card with the money she was laying away, her credit card finance charges would be less, and if she needed the items, she could use that credit she's freed up to purchase it when she has enough credit free--saving her money in the end.

Because layaway is inefficient, it hurts all involved (except bookkeepers and lawyers, I suppose). The merchant gets no interest, though if it can recover a service fee, that helps. The layaway consumer is allowing his money to be used free of charge until payments are complete. The non-layaway consumer is finding that prices are higher because the merchant's operating costs are inflated.

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.In that case, explain to me why it makes sense to pay interest on money without receiving the item immediately, instead of putting the money into an interest-bearing account or shopping card, or whatever means you want of saving it. It could be direct-deposited into an account from paychecks, even, in many cases.

I asked you the very same thing(worded differently) about things you by on credit and make installments on. What's the difference in the two? Bigger ticket items is all as far as I can see. You have to have a deposit for big ticket items. With lost lay away, the items are returned new and unused. With cars and homes their value have depreciated...considerably

Direct deposit? You're assuming poor people have bank accounts.

Layaway shoppers put down a deposit and make payments but don't pick up the goods until they have paid in full.

Well hello, everybody knows that, except maybe someone who had to look that up on the internet to find out how lay aways work.

We're not going to ever agree on this subject. Hell, I don't use lay aways and I'm defending them. Why? Because many years ago we did. It was how we were able to afford new school clothes and supplies for 5 children. Not at wal marts. At Gibsons, I believe the name of the store was.

Wal warts can do away with lay aways, it's no skin off our noses, but, it will hurt the people wal marts is supposed to represent...the community.

[newgeezer]

My mistake was in assuming you knew what the word "layaway" means.

If you think it means making loans to people who don't qualify for credit, it's no wonder you thought it would hurt poor people to eliminate layaways.

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Please. You obviously don't know squat about lay aways-and it shows. It means paying for merchandise in installments until it's paid off. Simple really. Try it sometimes, see how the little people cope./s

[newgeezer]

Thanks for trying.

I think I laughed the hardest when I read that she wrote, "never argue with stupid people, they'll wear you down and beat you with their experience."

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That's you in a nutshell. Good day. :-)

[Gondring]

What's the difference in the two? Bigger ticket items is all as far as I can see. You have to have a deposit for big ticket items.

But you get the use of the item IMMEDIATELY, *while still paying*. With layaway, the customer lets the merchant use his money free of charge for a while, then finally gets the use of the item later.

With lost lay away, the items are returned new and unused. With cars and homes their value have depreciated...considerably

And there's no refund on the money paid in, unlike with layaway. And there's also interest being charged for the loan they are giving you to use the item before it's paid off.

Well hello, everybody knows that, except maybe someone who had to look that up on the internet to find out how lay aways work.

You're the one who claimed it didn't work that way...in your post where you equated financing a car or house with putting them on layaway. I had to look something up on the Internet to teach YOU how it works, evidently, or were you just being disingenuous? (Look at my post #80, where I challenged you on this point: "Layaway plans allow you to take the merchandise away before its paid for?" and "I suspect few layaway plans operate the way you describe." Your response? "Then you're not familiar with the lay away plan as I suspected.")

Not only did you get that wrong, but you also claimed there was interest, whereas I provided counter-documentation to that.

I don't know what your game is, if you're anti-Wal-Mart, anti-poor, anti-American, or what...but while you encourage inefficiency, keeping poor people poor, inflating merchant costs, etc., I'll keep pointing out that the best way for poor people to stop being poor is to manage their money efficiently--and that's NOT the scam of "layaway!"

[Gondring]

Thanks for trying.

I think I laughed the hardest when I read that she wrote, "never argue with stupid people, they'll wear you down and beat you with their experience."

The fact that she's ignoring the facts and is making false claims makes me now suspect that she's merely a DU troublemaker or something. Then again, many people complain about how much they are giving to the government each year yet didn't get behind President Bush 41 when he proposed eliminating income withholding--something that would have given Americans a LOT of money off what they pay each year, by saving them the lost interest.

On the other hand, perhaps what she's saying is merely, "layaway is a convenience I want everyone else to subsidize." instead of suggesting people use an alternative method of saving their money for purchases.

[newgeezer]

You obviously don't know squat about lay aways

I have always known layaway is nothing more than a place for people to store their hoped-for purchases and to accumulate their savings until such time as the savings equal the price of the purchases. Then, they get to take the purchases home.

You were comparing layaways to various loans. Layaways are not loans. If they were, the people would get to take the purchases home at the beginning of the payment stream, instead of having to wait until the end.

So, if Wal-Mart eliminates the layaway option, people who would use layaway need only find another place to store their payment stream, right?

What is so hard about that? With or without layaway,

• they can choose what item(s) they need to save for.
• the payment stream is the same (put money toward it when they can), and
• they take the item home after they accumulate enough cash to pay for it in full.

The reason layaway exists is to give people a way to avoid what you termed "robbing Peter to pay Paul." Once they decide what is truly necessary, they put those items (call them "Peter") in layaway, right? In doing so, they are saying Paul is less important than Peter.

Thus, layaway offers a convenient way of imposing discipline on one's own spending habits. Unfortunately, it costs stores money to offer it, and that translates to higher prices for everyone (and that hits poor people the hardest).

[Mears]

I guess I'm used to all shopping less than 15 minutes from home so I've never used lay away.

I was actually referring to stocking up on gift cards, That seems like loaning your money,interest free,to the stores.

Have a healthy and happy Thanksgiving. I plan on eating lots of food,drinking many cups of coffee,and having a few cigs. Pure heaven !

[Eric Blair 2084]

Sorry Gabz, I'd like to help you with this argument but... I'm a man. And I have testicles to prove it!

I don't shop. I'm a hunter not a gatherer.