Walmart to end layaway program

[ArmyOfFive]

http://news.moneycentral.msn.com/pro...914&ID=6022388

[cowcow65]

Nooooooooooooooooooooo!!!!! :Shocked: I love layaway. Now where am I gonna hide Christmas presents????

[BzyBee]

Wal-Mart said it is working on ways to make other payment methods available to shoppers with limited credit, such as Wal-Mart-specific cards that offer zero interest for the first 6 to 12 months.

Getting some of those shoppers to take in-house credit cards can also mean more money for the chain in the form of card fees.

No big surprises here....
I expected to find reference to WM banking and offering credit cards instead of layaway. Also, the timing being in Nov. will give people the opportunity to get their WM credit secured before Christmas shopping season hits. I wonder what the interest rates will be after the grace period is over???

[LUV2SAVE]

I feel bad for those who use layaway. I don't think it is just for those on the low income scale (or how the article put it) maybe some folks use this to hide the presents from the kids or is a way of budgeting.

I am not, and never have been, a layaway kind of girl. I just have a hard time dreaming about how it is so close, just waiting for me, ready to take home. ;)If I want it, I either wait to plan how(and make myself stop dreaming) or get it now, whichever I can afford. I have taken advantage of the no (or low) payments no interest for -- months from many stores- Best Buy, furniture stores, Home Depot, etc. But I have to be really diligent about making sure we have the money to pay it off in full by that due date. I think WM is counting on folks not being diligent and hitting them up with back interest and horrible apr% rates once the 6 or 12 months are up. If you read the fine print on those offers it is scary what can happen if you don't pay in full by that time.

I've also heard stories about folks going and getting their Christmas shopping done, diligently paying on their layaway, only to come to get it out and surprise, horrible surprise, their stuff can't be found. And if it is "the hot Christmas toy", they've been just SOL.

Are there any stores that still do layaway?

[BzyBee]

I feel bad for those who use layaway. I don't think it is just for those on the low income scale (or how the article put it) maybe some folks use this to hide the presents from the kids or is a way of budgeting.

Not putting anyone down here...but there are much better ways to budget and plan for spending than to use layaway. If anything, people who use this as a tool may be spending much more than they would if they were working with a budget. IMO, these programs harm more people than they help. Unfortunately, many of them will be drawn into the new credit being offered to 'help' previous layaway customers. It will probably draw in many others who would not have used layaway before. I have a feeling those who used to work in layaway departments will be finding some openings in the credit departments!!

I think WM is counting on folks not being diligent and hitting them up with back interest and horrible apr% rates once the 6 or 12 months are up.

That is what they are all counting on. We saw an add last night...furniture store offering no intrest until 2011!! These folks are not stupid. They know that enough people will not pay in 5 years that they will reap a big profit. These offers are not to help the consumer...they are to benefit the bank. Credit is something they sell, and lots of people are buying.

[Stacy]

I am not low income, however I do go to Walmart and do my layaway during September for major Christmas items, major being, video games, DVDs, etc. It says it will end on Nov. 19. Does that mean I can do a layaway before then and have to pick it up by the 19th? Not cool... That is really the only time I go into that store...

[Stacy]

Unfortunately, many of them will be drawn into the new credit being offered to 'help' previous layaway customers. It will probably draw in many others who would not have used layaway before. I have a feeling those who used to work in layaway departments will be finding some openings in the credit departments!

Not true for me! I don't want another credit card! I can't get another card, nor will I be approved for one! I want to be able to do my layaway!

[BzyBee]

Not true for me! I don't want another credit card! I can't get another card, nor will I be approved for one! I want to be able to do my layaway!

I know it is not everyone...but many.
There are a lot of budget methods to use to prepare for next shopping season. Maybe you can get things lined up for next year and not need layaway or credit.

It says it will end on Nov. 19. Does that mean I can do a layaway before then and have to pick it up by the 19th?

Wal-Mart says it will stop accepting layway items on November 19th with a pickup deadline of mid-December.

[sweetiris]

I wonder if KMart is doing a happy dance since they are the only other big store I know of that doesn't layaway? I know in my area lots of people who will probably be going to KMart to do layaway instead of WalMart's credit card.

Or perhaps KMart will decide that if Walmart stops doing it, they can too?

[ArmyOfFive]

I hope K gets it together, more ppl shop K and they grow big again. It was shame that they fizzled.