(WZZM) - How long has it been since you've used layaway? Better yet, have you ever used it? Do you even know what it is?
Most Americans know what a credit card is, but before we all carried credit cards, many people used layaway to make an expensive purchase over time. Layaway is still available at some stores and others are adding it during the busiest time of the year, Christmas.
Marilyn Van Nuil of Plainfield Township has always used it and now likes it even more after using credit cards.
"Layaway, as far as I'm concerned, is the only way to go now. You can get yourself into trouble with credit cards. It's easier to do the credit cards but it comes down to discipline."
The discipline Marilyn is referring is waiting to buy the item. Layaway is when you put a down payment on the purchase, usually 20%. Then the store allows you to make payments on that item, usually every two weeks over the course of eight weeks. Once the item is paid off, it's yours. Most stores charge a one time fee per item to purchase it with layaway.
We went to six of the most popular stores in West Michigan to investigate their layaway rules. We started at Sears which offers layaway year round. For most purchases, Sears offers an eight-week layaway plan. It comes with a $5 fee and a $10 fee if you cancel. On bigger purchases you can sometimes get 12 weeks of layaway, but that will cost you $10. Sears also offers you 14 days of price adjustments. If the item you put on layaway goes on sale within 14 days of your original down payment, you can get the price lowered to the new sale price.
K-Mart, which is part of the same company as Sears, also offers layaway year round. It also goes with a $5 charge for an eight-week layaway payment plan and a $10 cancellation charge. K-Mart also offers a 12-week layaway option on items $300 or more. But where K-Mart differs from Sears is its seven day price adjustment on a sale. Both K-Mart and Sears require a 20% down payment on any layaway purchase.
Wal-mart only offers layaway for the two months leading up to the holidays. It started October 17 and all purchases must be paid off and picked-up by December 16. Wal-mart also has a $5 charge to use its layaway and a $10 cancellation fee. However, Wal-mart is more flexible with its price adjustment. You can take advantage of any price drop on your item up until your payoff date.
Kohl's doesn't offer layaway, instead offering a "Hold Policy." Kohl's will hold any item for you for one week, at no extra charge. If you don't return with a week to purchase it in full, the item goes back on the shelf.
Each store has its own list of unauthorized merchandise, items not eligible to purchase by layaway, like clearance items.
Target and Meijer don't offer any type of layaway.