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.
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.