Can layaway work in the Philippines?

November 13, 2008 at 12:17 am 3 comments

Layaway is making a big comeback in the US, thanks to the US recession. This is the first time I’ve heard of this and so I searched what the fuss is about.

The layaway plan is simple. You are in a store and something catches your fancy. You make a down payment and ask the store to set it aside and then you arranges for regular payment. Once you complete full payment, you can take the item home.

Layaway was first implemented during the Great Depression in the last years of 1920 and it’s making a huge comeback in the US. It is the answer of many US stores to their declining sales. Many store merchants no longer want to touch credit cards with a 10-foot pole. So rather than accepting credit card charges, store merchants choose the layaway plan.

Methinks this a great plan, which I hope can also be implemented here in the Philippines. In the last few years, our banks have become more aggressive in marketing their credit cards. Even students nowadays have credit cards. To avoid duplicating the US recession and economic mess, let’s not get over our heads and just charge everything away.

I do hope that layaway catches on in the country. Times are also hard here and we need all the help we can get. It would be very nice if I can see SM implementing this. Paging Henry and Hans Sy!


Entry filed under: money tips, Shopping. Tags: , , , , , , , , , , , , .

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3 Comments Add your own

  • 1. avria  |  November 13, 2008 at 1:37 am

    hi! just came across ur article wondering what’s layaway. hehe!

    For one, Abenson’s do offer this installment plan, Lay Away plan. My friend got his dvd player there using such scheme and he was even able to transfer it to another friend of ours when he needed to relocate to Baguio from Laguna. What’s good about it is the fact that you can pay it partially in any amount you want to. But of course, the lesser you pay, the longer it will take you to bring home your precious item! hehe! so much for the torture!!!

  • 2. pinayandmoney  |  November 13, 2008 at 2:38 am

    Hi, Avria. Thanks for visiting! That’s great info. I’m glad that layaway is also available in the country. I believe this is better than charging it to a credit card. Would you know if Abenson is charging extra fees or interest if you avail of the layaway?

  • 3. ted  |  April 16, 2009 at 7:09 pm

    I know a department store in Cebu City that implemented this method. It is indeed a good idea but the this might not work here in the Philippines considering the spending patterns of the Filipinos who always love to have things in installment. Credit card holder may opt for another alternatives like the zero percent interest offered by many merchants. But of course in the absence of credit card this layaway plan is a good option.

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