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Layaway

Layaway, also referred to as lay-by in Australia, New Zealand, South Africa and Great Britain, is a way to purchase an item without paying the entire cost at once. However, rather than taking the item home and then repaying the debt on a regular schedule, as in most installment plans or hire purchases, the layaway customer does not receive the item until it is completely paid for. There is sometimes a fee associated with a layaway purchase, since the seller must "lay" the item "away" in storage until the payments are completed. In the event the customer did not pay the amount due, the item would be returned to stock and any subsequent payments that were processed or are pending would be returned to the customer.

Layaway was once more common than it is now, since the ubiquity of credit cards has decreased its utility. Wal-Mart announced on September 14, 2006 that it would discontinue layaway service in all its stores by the end of the year, citing the decrease in demand and a rise in cost of implementation.[1]

Layaway remains popular at many Kmart stores and once again is being promoted through marketing outlets.[2][3]

Electronic layaway is layaway through the internet. It allows consumers to purchase items through scheduled deductions from a checking account.[4] [5]

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