One upside to layaway is that many plans have no-interest payments and installment plans, which let cash-strapped buyers make big purchases over time.
The best part is that you don’t have to worry about interest with layaway, as long as you don’t use your credit card to pay your balance. With layaway, you pay for the item before you get it.
But there are some downsides to using layaway. For example, hidden fees for cancellation, opening a layaway account, or restocking if you don’t finish paying can make it a big headache.
Layaway can result in excessive debt if you don’t budget properly.
A smarter, less stress-inducing alternative to layaway is to list the items you want to purchase and make a budget in order to know how much to save so you can purchase them. Put a little aside every week or month. Then pay for that item with cash instead of racking up debt.