Layaway At Heb

When I lived up in the city (Houston), I would travel around to different areas to see clients. I would often do my shopping in those areas, to save time, and was surprised to see that some HEBs, particularly the larger ones, have huge sections, especially at Christmas, with all sorts of toys, appliances, and electronics. They also have large selections of grills and garden supplies in the Spring/Summer. The ones down where I live now don't have room for that, but if you live near one, absolutely check it out, because they had some good deals, from what I saw.

 

What exactly is layaway? Is it a scheme where you pay for the item in advance, in installments and take the goods home once you've settled in full? If so, I think it's a great idea. Especially if you have kids and it's Xmas. I can't begin to imagine the financial pressures this can cause so anything that can ease the burden sounds good to me.

 

Layaway allows a person to make payments on things they want without a credit card. The item can not be taken out of the store until it is paid in full. Using layaway allows a person to have what they want without a credit card and to take advantage of things they see without the fear of it being gone when they get the complete purchase price.

 

There's sometimes a fee, often around $5.00, that a person pays for the privilege of the store holding the item for them. That is supposed to cover the administrative costs of managing the paperwork, storing the item, etc. If the person fails to complete the agreement, they lose the money they have invested, and although the store keeps the item, they've often lost the opportunity to sell that item at a more premium price, especially if the goods are seasonal.

One thing that has become popular, especially over the past several years, is for people who are well off or who have struggled themselves and then come into some money, to go to a store (or several stores) and pay off random layaways. Layaways are typically used by those who are trying to come up with Christmas gifts for their children, or those who are otherwise struggling financially and unable to buy large items by paying all at once. Some people use it as a way to buy household goods, such as furniture, televisions, and the like.

 

That seems a far more sensible way of doing things. In the UK, the closest thing we really have to this is an awful store called "Bright House". They allow those on low incomes to purchase big ticket items through monthly repayments. The goods themselves are overpriced and the monthly repayments attract interest at a rate of up to 97% APR! Yes, you get the item immediately but it's easy to end up paying three times the going rate.