eLayaway

Layaway returns

An old holiday tradition is making a quiet comeback online this year. Layaway is a savvy way to pay for big ticket items without racking up credit card debt. Now, some nationwide retailers are taking their layaway programs to the internet.

A quick web search will offer many online layaway retailers that act as a middle man between you and other retailers. ELayaway.com has been around since 2006 and boasts free membership and more than 700 merchants to shop from.

ELayaway's transaction fee is less than two percent, making it an attractive alternative to credit card purchases.

"It allows them to adjust how many payments they want to make and what days they want those payments to make and the ship date or delivery date of the item."

In addition to avoiding debt, layaway transactions aren't reflected on your credit report.

"People are busy. They have a lot of things going on, especially during the holiday season. This just gives them another option."

Earlier this year, Kmart announced it would offer its layaway program online. That's made a big difference for store manager Mike Smith.

"Our layaway has actually doubled this year versus last year," Smith said.

In fact, Smith anticipates expanding his layaway stock room as we get deeper into the holiday season. The most popular layaway items are televisions, bikes and furniture. You can take advantage of Kmart's online layaway shopping online or in the store.

If you buy online, the item is shipped to your local store for pick-up. There is a $5 fee and you'll pay a down payment of $15 or ten percent of the purchase price, whichever is larger. But Smith says there are decided advantages to using layaway.

"First of all, you don't have to store it at your house. Secondly, you can make payments with no interest unlike a credit card."

The Better Business Bureau offers advice before agreeing to a layaway plan. Be sure to account for any service fees and penalties for late or missed payments. Review the cancellation options and check if refunds are available. Online companies can be more difficult to evaluate than brick and mortar stores, so check them out with the BBB online before you buy in.