(WTOL) - For cash-strapped consumers shopping this holiday season, layaway can be a life saver.
This year stores offering layaway include Walmart, Sears, Kmart, Toys R Us, Best Buy, and even TJ Maxx and Burlington Coat Factory.
But there are some catches:
- Many stores have a $5 free to open an account
- Some require a 20 percent down payment on bigger priced items
- If you miss a payment, the store can put your item back on the shelf and possibly charge a cancellation fee.
- And finally, if the item later goes on sale, you may or may not get a price adjustment.
After putting something on layaway, you may also find it at half the price on Black Friday or Cyber Monday.
That's why, if you are planning a big electronics purchase, watch for Black Friday ads, which typically come out in early November, and find out what happens if you decide to pull the plug on your layaway purchase.
The bottom line: make sure you know what happens if you miss a payment or decide you want to cancel, because the last thing you want are Christmas penalties, so you don't waste your money.
