Assignment 3-1

Layaway Instead of Credit Card

This week I decided to review an article on layaway. The economy is going through a rough time right now, so consumers and retailers are looking at a common practice of the 1960-1980’s. Layaway recently was thought to be erased by the use of credit cards. However, it is making a comeback in some retail stores, such as Sears, Kmart, and TJMaxx. It is also available online at some web sites. The problem with the use of layaway is that stores benefit more from the use of credit cards because customers tend to spend more. Customers like the idea of purchasing an item and having instant gratification versus working overtime to pay for a purchase.
I am a fan of the credit card. I like to know I can have something right now. I don’t like to wait for something I want. However, I also pay my credit card off each month (thanks to my husband’s nagging) so there aren’t high interest rates to worry about. However, I think with the way our economy is heading, the come back of layaway is a great idea. There will be less consumer debt, and they can still buy the products they want, it’s just over time.

References
http://www.creditcards.com/