Layaway has become increasingly popular with the challenging economic times. Many find it very helpful during the holidays to be able to space out payments. However, Better Business Bureau of Southern Arizona warns that putting an item on layaway may result in a loss of money or the item itself if you don’t read the contract carefully.

BBBs around the country have received complaints in the last year from consumers whose layaway purchase did not turn out the way they anticipated.

Consumers mainly place furniture, toys and jewelry on layaway and do so at a variety of stores, including national chains, local retailers and pawn shops.

“It’s important to know the policies up front. For instance, a lot of items might not be eligible for layaway on big sale days so call the store before you head down and stand in line on Black Friday, for instance,” said Kim States, BBB President. “Also, the worst thing that can happen with layaway is the company going out of business. So be sure to only sign up with a reliable retailer.”

BBB suggests that consumers consider the following when using layaway this holiday season:

How long can the item be on layaway?

It’s important to know that some items have a time limit and once that time is up, the item is returned (more…)