Talk about delayed gratification. Layaway — that old-fashioned practice of putting merchandise aside and making regular payments until everything's paid off — is a shopper's ultimate test of patience.
But, it's also a great way to do major holiday shopping without racking up credit-card debt. An added bonus is that since merchandise is held at the store, presents are safely squirreled away from spying eyes.
McGuire's Jewelers, 230 E. Wetmore Road, tends to do brisk layaway business this time of year, said co-owner Cyndy McGuire.
"I think probably for men, they put things on layaway to keep it out of the house," she said.
Layaway was common during the Great Depression, but it started falling by the wayside as credit cards became readily available in the '70s and '80s, said Kathy Grannis, a spokeswoman with the National Retail Federation. Many retailers did away with the practice by the time 2000 rolled around, she said.
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In the current economic climate, though, "people are doing everything they can to stay away from charging new items," Grannis said.
Typically, store layaway plans require customers to make a down payment and then they have a certain amount of time to pay off the balance. McGuire's has a fairly flexible layaway system with customers putting about 20 percent down. Then, they typically have three months to pay off the balance, McGuire said. A customer might put something on layaway and then family members will pay down the balance as a gift, she added.
The store is known for its well-stocked estate case, filled with one-of-a-kind pieces. Layaway is perfect for the customer who sees something she wants but doesn't have the money right then.
"There's a lot of unique pieces in there," she said. "They know it's not something they can reorder. If they don't have the money that day, (layaway) is the way they can get it."
Retail giants Sears and Kmart offer highly advertised layaway options, even for online shopping. Toys "R" Us and Babies "R" Us and local Best Buys just started layaway programs. For those who don't want to leave gift-getting to chance, some local boutiques also offer layaway plans for personal shopping.
At Sigi's Boutique, 4340 N. Campbell Ave. in St. Philip's Plaza, owner Jennifer Senger requires 30 percent down and the remainder needs to paid off in a month. She's seen an increase in the number of layaways recently. Her customers make cash payments, she said.
Stems — A Shoe Boutique, which is also in St. Philip's Plaza, began offering no-fee layways in March. The store requires 30 percent down and six weeks to pay off the rest.
"It's a responsible way to get what you want because you're not going into credit-card debt," said Andrea Decker, who regularly uses layaway. In fact, the assistant manager at Stems has a pair of black boots stashed away at her store right now. "I wish more stores would do it."
If you're shopping for yourself, though, there's also another way to go, said Monica Negri, who owns Ten Outfits, a style and wardrobe consulting business. Negri, who herself once put a painting on layaway, used to own a California vintage store with a layaway plan.
Another option — she said — is to just wait, period.
"In a month or so — nine times out of 10 — whatever you wanted, it'll go down."
Tips from the Federal Trade Commission
• Get the merchant's layaway policy in writing.
• Make sure you know the terms of the layaway plan, such as how much time you have to pay for the merchandise or service; when payments are due; the minimum payment required; and possible charges for using the plan, like a service fee. Find out if there is a fee for missed or late payments.
• Ask about the refund policy. If you change your mind about the merchandise after you've made some or all the payments, can you get your money back?
• Check out the business. Contact your state Attorney General's Office (www.naag.org), local consumer protection agency (www.consumeraction.gov), and your local Better Business Bureau (www.bbb.org). They can tell you if consumers have filed complaints against the retailer or online service.
• Keep good records of the payments you make on layaway merchandise. They may come in handy if you have a problem with the seller.
SOURCE: Federal Trade Commission Web site, www.ftc.gov/index.shtml
One more thing. . . .
Many stores honor sale prices if items go on sale within a certain period. Check and see if this is the case with layaway, too.
"It's a responsible way to get what you want because you're not going into credit-card debt. I wish more stores would do it."
Andrea Decker,
who regularly uses layaway. In fact, the assistant manager at Stems has a pair of black boots stashed away at her store right now.
