The current world of internet shopping has birthed another which is called online layaway as it affords the customer a chance to pay for the products in installments and does not make him pay for each product at once. In this article, we are going to delve on what is meant by online layaway, how it assists and how you can make use of layaway in your shopping lexicon.
What is Online Layaway?
Layaway also known as ‘Online layaway’ is a buying process where a shopper chooses an item and pays for it in a certain number of agreed installments. When the whole amount is paid the product is then buyers. Online layaway is relatively different from such payment options as credit cards and installment plans where usually clients are offered a credit check and interest charges. As such, it makes it a good choice for people who do not wish to borrow money, or do not have desire or ability to borrow money from a credit provider.
How does online layaway work?
The steps that are followed when using an online layaway program are often very easy, but depend on the retailer in question. Here’s a general overview of the process:
Choose a Layaway-Eligible Product:
The first step here entails is to go to the homepage of a merchant that supports layaway payment option. You should know that not all products are accepted for this kind of payment and so you need to ensure that the product type of your choice is acceptable to be paid through this method.
Make a Down Payment:
Usually, once you have chosen your item, you will have to place a deposit for it in the first instance. The down payment is usually an insignificant proportion of the total cost of the particular asset.
Set Up a Payment Schedule:
After the payment made for down payment the rest of the amount is spread over installments. You will make regular payments to the store, such payments could be weekly, biweekly or monthly depending on the agreement of the store.
Receive the Item:
When the full payment has been made, the item will then be delivered to your doorstep or you can choose to come and pick the item at any agreed place. The receiving of the item requires the user to complete payments and the time taken will determine the period of receiving the item.
Benefits of Online Layaway
Among the main causes why people are now beginning to accept online layaway, the number of advantages that are being provided are countless and most important of all, affordable to the consumers. Here are some of the key advantages:
No Interest or Hidden Fees:
Speaking of layaway plans, they are different from credit card purchases or loans for instance, in that layaway plans do not attract interest usually. This in essence implies that you only pay the real price of the product, and this aspect is very cost effective since it will reduce expenses in the long-run.
No Credit Check:
Most payment options, including credit card, employ credit check system, and therefore cannot be afforded by people with bad or little credit rating. That is why it is easy since it does not require a credit check to the individuals who want to use the online layaway payment system.
Budget-Friendly:
The online layaway feature helps one to be able to afford the part payments for the expensive purchases for they are done for a long duration of time. This way, you are also able to buy things which you would not otherwise afford to pay cash for due to the fact that they are paid for in small portions at different intervals.
Reduced Impulse Buying:
Layaway can assist to reduce impulsive buying since it is a systematic way of acquiring goods. Layaway method helps to plan the spending more efficiently because you will not receive the item until the full payment is made on the item.
Convenience:
As for layaway, you can make it online, which means no store visits or handling of papers. The good thing is that from the selection of the particular item to payment, it can all be done online. Layaway plan is easily managed because many retailers have made it possible to have automatic payment methods.
Reserving Popular Items:
See some products, mainly electronics and those related to festive seasons are items that go off the shelves quickly. In layaway, for example, you can set an item on hold for yourself before it’s gone, although you don’t have the money at once.
Online Stores that Still Support Layaway
Some of the large stores have opted for the online layaway model, thus allowing their customers to be more flexible in the way they use in paying for merchandise. Below are some of the top stores that provide layaway services:
.Walmart
.Sear
.Kmart
.GameStop
Know Before You Make Use of Online Layaway
While online layaway is an attractive option for many shoppers, it’s essential to consider a few factors before committing to a layaway plan:
Cancellation Fees:
A few merchants may also be allowed to charge customer’s cancellation fees in cases where the client decides to cancel the layaway plan before paying up fully. Care should however be taken particularly when reading the small prints since there may be additional costs incurred.
Time Limits:
Layaway payments are normally scheduled within a certain timeline within which you need to have paid up. As for payment, there are normally downfall free of charge, however, if you do not pay the monthly payment on time or fail to pay off the balance on time, you might lose the item or be charged extra fees.
Non-Refundable Down Payments:
In some of them, you will have to pay the down payment and this payment might not be refundable if you cancel the layaway plan. Make sure you discover what the store requires of any party who decides to back out of the bargained for deal.
Availability of Items:
It is however important to note that not all of the products being sold in the stores are under layaway plans. Layaway is credited by retailers to specific items, sometimes expensive or trendy products. Before you go out fixing your heart on something, make sure it is allowed under the layaway plan.
Payment Flexibility:
Make sure that the layaway plan is workable in your fiscal capacity. This approach, however, has its own drawback because your financial plan should allow you to make the payment as per, he set timeline.
Is Online Layaway Right for You?
Online layaway is particularly advantageous for those customers who wish to purchase items, which they could not afford otherwise given the fact that they do not wish to incur debt or be charged interest. The analysis is particularly helpful with buyers planning for next year’s purchases in anticipation of an event or require holiday shopping. However, before going for this method, some disadvantages are associated with it like cancellation fees, missing payment penalties among others.
Conclusion
Layaway services available online and has changed the way people made big purchases since it does not involve any debt. It enables the shoppers to make low payments while enjoying feeding their hard-earned money on secured items. Through proper understanding of the online layaway strategy, consumers are in a position to make proper decisions of where to shop, with the retailers they chose offering technology that they can afford and one that does not overwhelm them with the financing element. Nobody was born with cash in their pocket, and as consumers, people have been using payment systems for a very long time and online layaway is a great choice for a big purchase or an interested payment plan.
