By JOHN EWOLDT
Minneapolis Star Tribune
Some consumers today are too young to remember layaway, but some stores still offer it or are reviving the old practice as many try to break the buying-on-credit habit.
Stores with a layaway program will set aside items for shoppers and allow them to pay over time, usually eight to 12 weeks, for a small service charge. You put 10 percent or 20 percent down and make payments at regular intervals, usually for 90 days or less.
It's a good program for the saints and working poor who live without credit cards. But it's also good for the rest of us who abuse credit cards and want to stick it to the man at Visa, MasterCard, Discover and American Express because he already stuck it to us. Even if you don't abuse credit cards, it's good for those who prefer to pay only with cash during the holidays.
Kmart and its parent company, Sears; T.J. Maxx; Marshalls and Burlington Coat Factory offer layaway. Wal-Mart offers it on jewelry only.
So consider a credit-card free Christmas by using cash and layaway. Read the layaway contract carefully at each store for "gotchas." For example, there is often a service fee ($5 at Kmart/Sears) and a cancellation fee ($10 at Kmart/Sears).
A few tips: Try to put the item on layaway when it's on sale. Kmart/Sears allows one price adjustment within 14 to 30 days of the original layaway date. Kmart/Sears does not allow clearance merchandise on layaway.
This year Sears and Kmart are offering a variation on layaway -- the Christmas Club card. Banks and credit unions have been offering Christmas clubs dating to the first fruitcake. This is a slightly different variation. Activate a card in the store or go to www.sears.com/christmasclub. Do it before Oct. 31 and get a 3 percent reward credit added to the value of the card.
Want a different group of stores to practice your layaway skills? Try eLayaway.com, which claims that 1,000 retailers are participating.
