Layaway seems harmless enough, but unless you are taking advantage of the free layaway programs being offered by some retailers this year, it might not be the bargain it seems.
Proponents often argue that layaway helps consumers avoid paying interest on credit cards, but if you add the fee some retailers charge to put items aside, plus the cost of transportation back and forth to the store to make payments, how much money are you really saving? And it can be even riskier if you're not sure you'll have the money to pay the bill because you can stand to lose the payments you have already made if you miss a payment.
Still, this year, layaway may make slightly more sense because more retailers are trying to outdo each other by offering sweeter layaway terms. Many have waived the layaway fees for parts of the holiday season as they fight to win your business. Some even allow you to make payments online, which eliminate the need for extra trips to the store.