Can layaway work in the Philippines?
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!