The new ecommerce phenomenon that is sweeping the internet shopping centers these days are online layaway plans. Many online retailers are making layaway plans available for their customers with a traditional feel to the layaway plan. While many brick and mortar retailers are abandoning layaway, online stores seem to welcome this new plan and hopes that users will see the need for online layaway plans.
Online layaway plans work just like regular brick and mortar store layaway plans. You pick out an items or items that you want to purchase and then make a small deposit on the items for the retailer to hold the items for you. You make payments on the items over time. Some layaway plans last all year while others last only a few months. Six months is usually the normal amount of time for a layaway plan. Once you make the final payment on the item or items you get the items. For big purchases when you don’t have all the money at once layaway can come in handy.
There are a few drawbacks to layaway both in brick and mortar stores and online. One of those drawbacks is the fees associated with layaway. Some stores want to charge an installment fee each time you pay on your layaway. And if you’re paying biweekly this can really add up even if it is only a few dollars. Other fees include canceling fees. Some online retailers charge as much as $35 restocking fee for canceled orders. Another drawback is many online layaway plans require you to have funds automatically drafted from your card. By doing so, there isn’t much difference than buying the item on a credit card and getting the item up front if you use this method.
They can be really good at shopping online for Christmas gifts however. Getting all your shopping done a few months before Christmas is a good idea and you can pay along and along which helps keep the burden of credit card bills off your back.