CNBC, November 22, 2011, Tuesday

CNBC

November 22, 2011, Tuesday

CNBC (full article)

This Holiday Season - Lay off the Layaway
By: Louis Hyman

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Recently Wal-Mart and other retailers have revived their mothballed layaway programs. Stores promote lay-away as a way for shoppers to avoid “debt” and still buy all the Christmas presents that they need. Lay-away is not debt, but like debt, it charges shoppers more money than the price of the goods. With credit, you get the goods today and pay the bill tomorrow. With layaway, however, you get the goods tomorrow and still have to pay the bill tomorrow. The downside of debt is not the instant gratification (which we all love), but the way in which an unpaid debt drains the pocketbook. Layaway does the same, but without the instant gratification.