Layaway
From Wikipedia, the free encyclopedia
Layaway, also referred to as lay-by in Australia and New Zealand, 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 typically 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 payments would be forfeited.
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]
Electronic layaway is layaway through the internet. It allows consumers to purchase items through scheduled deductions from a checking account.[2] [3]
