Lay buy - what is it, should you use it and the advantages and disadvantages of using lay buy?

If you don’t have cash, what is the next cheapest way of buying something over 3 months or longer?

Obviously cash is king, and it’s the cheapest. The next best way of buying anything is lay buy.

Have you ever tried to Lay Buy?

I know the kids are hardly back at school, but soon it will be winter and they will need winter school uniform, jerseys tracksuits, and so much more.

Quite a few school uniform suppliers have a lay buy option, so it’s best to call ahead and check before you go.

READ MORE: Lay-bye instead of using your credit card

Apart from school uniforms, what other things do people buy on lay buy?

There are people who have been using lay buy for years to buy clothes and appliances like fridges and washing machines

Truworths, as an example, is busy rolling out a nationwide lay-buy programme, and they expect to add a couple of percent to their sales as a result.

We all know online retailers as the place where you use your credit card. There’s good news, a number of online retailers are allowing customers to pay off that expensive pair of jeans or the new Kenwood Mixer over a few months, using a lay-bye system.

This is following the trends in the US and Australia, and they believe it is because people are becoming more nervous about using credit cards and getting into too much debt.

What are the advantages and disadvantages of lay buy?

Disadvantages of lay-bye

• If you change your mind you could lose a cancellation fee (1%).
• Not all businesses are honest – make sure you hand your hard-earned cash to a reputable business.

Advantages of lay-bye

• Interest-free – you will pay close to double if you take the same item using store credit. Even a credit card paid in a few instalments will attract interest and fees.
• Pay more or less than agreed, but you have to finish in the contract period.
• Goods are the same price as cash – in easier instalments.

There are advantages and disadvantages, but you could save money using lay buy.