(Lay-bye for the kids’ school clothes now and get them in January)
We’ve all heard about Lay-bye, but very few people have used it, but it is a very good way to get the more expensive things, by paying for them with cash over a few months.
To lay-bye goods, the consumer pays a small deposit and subsequently makes regular repayments until the total price is paid. Each lay-bye agreement is different, but all include three or more payments
Of course, there are some things to be careful of what you need to know before you enter into a lay-bye agreement.
Many people have used lay-bye for many years especially in the clothing and small appliance market and generally, it has worked well.
READ MORE: What is responsible credit?
Truworths, as an example, is busy rolling out a nationwide lay-bye 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, well 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.
RD Debt Counselling did a search and came up with a few online retailers, some who offer lay-bye for their in-store products, and then a few who you would use to lay-bye your money and then when they had it all they would pay the online shop and they then deliver the goods that you bought.
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 installments 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 installments.
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.
and why not start planning for next year and the kids school uniforms, January is never an easy month, so if you go to the school uniform shops now and lay buy for the January uniforms, then by the time January comes, you will have only a small payment left, so it’s your choice, either you lay-bye and breath easier in January, or you get more debt by swiping your credit card.
So make January easier and lay-bye now for the kids’ school uniforms.