Layaway makes a comeback

Tear up all your credit cards and dump every form of credit you can. This is the new America and by March 09 you will not even want to use Lay away.

Eat well and be happy because you all is Tax Slaves just like me from this point forward!

I have always lived within my means...and used layaway mostly in the 1970's and 1980's. I love that it is becoming more popular and believe that it is a great option for consumers. I am mostly NOT an instant gratification person...except for small treats that I budget for.....

Layaway is better than charging but I still don't totally agree its a good idea.  This Christmas we are going to draw names and just buy one present as a family.  My wife and I quit giving each other Christmas presents years ago.  We are blessed and have each other and don't really want for anything much. The best present is we have each other and we are healthy. We lost my wife's mother in July and a few weeks later her father said he didn't know what to do for us for Christmas. She then told him Daddy didn't you notice we quite giving each other presents years ago meaning my wife and I to one another.  On the risk of being criticized Christmas is the birthday of Jesus. It not the holiday season. I suggest if you do spend money at least spend where they recognize its Christmas not Xmas. So to all of you Merry Christmas.

Steve, you don't have a clue.  Layaway does not put you deeper in debt, at least not at Kmart.  If you cancel the layaway you get bqck all you have paid minus the canceliation fee and layaway fee.  I work at a Kmart and layaway has always been a significant part of our business year round and more so at Christmas.  Many people gladly pay us the 5.00 fee so they don't have to worry about hiding the Christmas presents.  Many others can afford the items but use layaway to ensure they get the hot items when they are available.  People will put summer furnature on layaway early and when it is warm enough to use it they have paid it off without having to worry about storing it untill yhey are ready to use it the first time.  I know a number of these customers well enough to know they could easily pay for the items with cash they just prefer to use layaway.

You sound like you work for Wally world who said "we dont want the kind of customer who uses layaway" when they formaly ended it. 

Really Steve you don't have a clue.  I love layaway and I always have.  I remember buying my kids clothes for the summer and winter and school clothes on layaway.  It felt great getting the clothes out of layaway was like a christmas to them.  My kids are no longer at home so I don't need it that much.  but it still is a great feature of the stores.  I would rather go to Kmart than Walmart just for the fact of the layaway.  Walmart screwed up big time when they got rid of it.  I would love to see Kmart pick up business and Walmart go out of business.  I have now taught my daughter the fine art of layaways and if my son would get over the instant gratification of things he would love it too.

I grew up with "layaway".  It was a great feeling purchasing something with your own money.   Credit Cards tempt people to buy things they can not afford figuring they will pay them off later.  Later never comes for a lot of people.  I do not use credit cards these days unless is is an absolute emergency ( car repair or home repair that has to happen immediately, pet emergency,) other than that it's cash or a debit card. 

It is harder to overspend on layaway...because you have to make payments every week or two...and you can usually void the purchase for a small cancellation fee. I am glad to see this generation being exposed to what I consider a good idea.

I agree with everyone else Steve. This is a good tool for saving the purchase where you know it is dedicated to that purchase. Plus a little known fact to K-Mart layaway is that when you go in to make your payment they will re-calculate your balance to show any sales that are cureently running on the products you have in lay-away. You save all around. A good program for those not quite to the point of saving money in a savings account.

I have never had credit cards.. I started purchasing on layaway years ago, and when My kids were little thats how I got school clothes ect. .. I use to use walmart til they dropped layaway 2 years ago, since then I have been at Kmart, for those of us who do live within our means and not from plastic its a great option..

I have a savings account it used for Household repairs, property tax, and car repair emergencies, not dipping in savings, you pay out from paycheck into layaway just takes buying before last minute and never worrying about not having it or huge interest thats usually more than your purchase is worth.

Glad to see it back. It was a great concept for the consumer. Of course the big banks that back the credit cards don't like it which in my opinion makes it that much better!

Man i missed layaway, it was the best way to hide Christmas gifts, some places even wrapped them for you.

Layaway doesn't create more debt unless you are buying something you can not afford and then charging everything else on your credit cards.  If anything it alleviates credit card debt as you are paying for your purchases with cash and not sticking them on a credit card.

thats great Jmac, just use layaway as a crutch instead of working up the small amount of discipline it takes to be financially responsible.

We all need to buy some things like kids' school clothes. And sometimes we have a few wants like a new kitchen table. ******** There is NOTHING wrong in making an informed decision...picking out your itme(s) and paying them off little by little. This takes discipline and certainly takes the fun out of having something immediately. ********* It is NOT a crutch...unless you go overboard and always have to void your layaways or overuse your credit cards at the same time. Using layaway only, the worst that can happen is small loss of money from cancellation fees.

Layaways, just like credit cards are NOT bad in themselves. It depends on the person using them and their actions. Even a person like me who is super responsible...enjoys knowing that I can get something on layaway without going into debt...

I agree jmac - Layaways are great.  I use to put my christmas gifts for my family and kids, on layaway.  I paid a little at a time and just before christmas, I paid the layaways off.  Layaways made it alot easier to acquire those things you needed or wanted.  Layaways are alot better than credit cards, you may have to wait but it's finance charge free.  Layaways are also helpful.  I'm sure there are many people who impulse shop.  Putting an item on layaway allows you time to think about whether you really want the item or not.  Also, when items go on sale - you may not have the money for the item at that time, but a small down payment into a layaway plan allows you to purchase that sale item with a little money down.  Allowing the consumer to save on the cost of the item and putting money into the economy and helping to keep the economy strong through cash payments and not credit cards.

Layaways are not retail welfare and they are a better option than credit cards.  Personally - I'd rather put items on layaway and wait two months to get it than have it now and use a credit card. 

Yes it is nice to sit down for the holiday and know that the gifts are paid in full.

Agreed.

It IS on layaway...we pay a little at a time...for a loooooong time..... However, we can NOT cancel....

Layaway is actually pretty simple...

You go through the store and choose items and instead of heading for the checkout line, you go back to the layaway dept. and they ring up your purchases and store them away until they're paid in full or the due date is reached.  You fill out a card/contract with your contact information, etc.  The clerk attaches the receipts to it, gives you a stub to keep in your wallet that details the balance, payments, etc. and then they file the card. 

When you return to pay on it or get it out, you present the stub, they pull the card and they apply payments towards the balance.  If you're paying off the layaway, you generally sign the card to show that you picked up the items. 

How much $$ you initially must put down and how long they will hold your layaway varies by retailer.  TJ Maxx and Marshalls' used to be 10% down and they'll hold it for 30 days.  Don't know if that's still the case.

Some general rules, caveats, gotchas:

1)  Usually stores only allow layaway on regularly priced items.  For example, marked down merchandise typically not allowed in layaway.

2)  Some stores don't have room for large items, so large pieces of furniture or rugs may not be able to be layed-away

3)  Most stores charge a fee to use layaway -- most of the time around $5.00

4)  If you don't pay on your layaway and/or pick it up by the due date, they put the items back in stock and keep your fee.  

I've used Layaway in the past when I found something that was one of a kind and I didn't have enough cash to buy it that day.  Generally I would have the cash within a week or two and would just go get it out and it was paid off.  Semi-instant-gratification... bottom line, you need to weigh whether it's worth paying the fee for what you're putting in layaway.  I think it's pretty useful for families who need to buy a lot of toys and stuff because the retailer is storing the stuff for you and your kids can't snoop around in the closets (yep.  I used to do that-- I'll admit it).  AND you can pay on it gradually and NOT use the freakin' plastic!

I think it's a good "bridge" to transitioning from using to plastic to an all-cash lifestyle. 

I think I'd like to go back to using it because when I was using Layaway, I was a lot more *thoughtful* about my purchases, not to mention when you went to get your layaway out, it was like Christmas because usually you'd forgotten exactly what items were in there...

:)

it is a simple purpose; instead of paying interest on a credit card, you buy what you  need and pay on a payment plan, interest free; it helps you budget and also not extend yourself with credit you cant afford; I did it when I was a young bride, and first moved here and could not get credit because I had never worked here; my first husband was deep in credit card debt and still paying for his divorce,so for me it was an easy way to buy what we needed for the house or buy clothes on a timely manner;  by the time you have paid off the bill, you feel like you really own it and have worked for it; that's all; you can do layaway  year around,and the great thing about it, if you are that suspicious of the whole process, if you dont want to do it, you dont have to; the alternative, use your credit cards, run them up and then when you cant pay them or you loose your job, you either file bankrupcy or ask to be bailed out!

The idea of layaway is discipline. Some of us can save up for what we need at home.... But some people need the push to pay so much a week.

You need school clothes for the kids or your washer is dying....so you put what you need on layawy...then "force" yourself to pay towards your future purchase when due. Like a "bill." However, it is NOT the same for most people to have the discipline to just set the money aside and not spend it for other needs.

I can't speak for anywhere else but I know doing that would get you fired in a "New York minute" where I work.

If you buy something NOW or on layaway...you just have to check the size, etc. when you get it. A customer shares some responsibility. *********** However, like some people, some stores are dishonest...... Buyer beware!

A store does THAT to me...and I realize it wasn't a mistake.......that is the last time I would use their layaway...or buy much in that store....

Shawn, you get the "golfers clap" for that one....

People need to think beyond CREDIT and do some planning before just "swiping" and getting something without paying.....

Layaway is perfect for me.  And no I don't have bad CC history or no self control.  It's called being a single parent, working two jobs and getting no help from the father.  I'm doing it on my own, living paycheck to paycheck and when Christmas comes, I'm not going to have my son have nothing.  So because I get a little xtra each check layaway allows me to use that for his christmas presents.  I'm not able to go out in one day and buy all the gifts.  Layaway allows me to pay for it out of each check. 

People need to think beyond that it is just for those with bad credit or no self control.  I have seen alot of people that make alot more money than me using layaway, they just don't tell anyone so they don't have the stigma attached to them.  GROW UP!

snuggler,

Please don't take my comment as a personal attack, as that was not the intent.  That said, though, as you stated you have good CC history and have savings self control...I would recommend getting a CC that allows you cash back.

The reason I say that, you say you give your extra each week to the store...if you were to save that in an interest bearing account (open a zero balance, interest bearing account, like those found at WAMU), you would make money on that money (so as you get your check, tuck that extra into the savings account).  Then, again, as you said you have control about saving, use a rewards credit card, you would get more money by using it to make those purchases.

In that manner, you would be able to get even more for your son at the same cost you are spending now.  Check out this card as you get cash back when you shop.

By doing those two things (and keeping the control you maintain you have) you'll be able to add more to your bottom line, or provide you and your son more for yourselves without any additional expense.

It's about learning how to use the money to work for you...

God Bless.

My husband & I make just shy of $150K a year & I still love layaway.  I don't even consider a stigma when using layaway.  To me, it's a little like using coupons.  Sure there will be people who look at you a little strange, but when you think about it, it is even stranger for them NOT to be using coupons at a time like this.  So when I'm saving money, be it discounts on groceries or interest charges, I am the one that is the wiser consumer.  My finances will reflect that and one day when I can retire a few years earlier or be debt free sooner, I guess I'll have the last laugh.

4,

I can understand your use of coupons (even at my salary, why not save some extra $$), as that is a savings of money for the purposes of purchasing something, but I don't understand how you can coorrelate that do layaway...

In that instance you're letting someone else earn interest off your money while not receiving the item in question.  It would seem to make more sense to put the money into a created interest-bearing account, and put your "layaway payments" into that account (so that you earn money from your money).

Then when you have enough to pay for it...you put it on a CC that gives you cash back (so you earn more money), and then pay it off near the end of the cycle (so you get yet another 1.5 months interest on the money you already spent).

You're giving the store interest on your money and allowing them to charge you to do it.  It's illogical and you're kinda throwing money away...

I have to agree with Shawn. I've never understood the whole "I start buying Christmas presents in July to spread out the costs" or the "I use layaway so I can just put a little bit from each paycheck towards the cost" logic.

If it's an isue of being able to afford something when you pay it over time, then wouldn't it make much more sense to open an interest-bearing savings account to deposit those small amounts from each paycheck? That way, not only are you saving the cost of the $5 service charge, but you're also earning money on what's in the account. Plus, if you then get a rewards card that gives you cash back and use this card to purchase the gifts once you have enough money in your account, then you're getting 1% or 2% back.

Let's say you're buying your son a Wii (retail cost: $249.99). If you purchase it on layaway, this now costs $254.99.

However, if you'd put that money into a savings account with a 2.75% yield, then you would only have needed to deposit $243.30 into your account to afford this. Now you have $249.99 (the cost of the item) in your account for the cost of $243.30. If you use your rewards card to buy the Wii (and will pay it off in full once you receive the monthly statement), then you would get $5 back in rewards.

So under that scenario, the Wii really only cost $238.30, as opposed to $254.99 if using the layaway.

What can you do with that extra $16.69???

FYI: I took the 2.75% APY statistic directly from ING Direct's website for their Orange Saving Account. No fees, no minimums. Their interest rate used to be higher, but then again, so was everyone else's.

But my point still stands. Why pay a $5 service charge when instead you could put your money to work for you.

As I have mentioned in other posts...There is a time and place for layaway.  So as not to repeat myself numerous times, please check out my other comments.  If you are purchasing a sale priced item or an item that will likely be in short supply for the holidays, $5.00 can actually be a savings.  There are also times when people on tight budgets need a backup plan.  It is not for everyone or for all situations, but it definately has it's place.

Plus ya get that 5.00 back, that fee is only charged if ya fail to pick up purchase on time or cancel it..so as long as ya paying and take it home on time there is no fee.. I don't see why it bothers so many..I am old and have never used credit cards, Have a nice savings that is strictly used for House repairs, property tax, car repair..If I am out and want to buy something thats more than money in pocket as a gift or for self, layaway works..the key to layaway is placing only what you can afford in, if ya going to put in 500. worth and can't make the payment then no layaway is not the way to go and ya will be charged the fees..I rather see young family use layaway then credit cards and lose everything, many use them for holidays good way to keep snoopy eyes from seeing til its time... also helps keep that money in savings for important things (emergencies) !

Kat,

I wouldn't say it "bothers" me, but it does give me a chuckle when so many places are ready to literally hand money to people that are financially sound and people refuse to hear the call.

I have a credit card that gives me up to $500/year that I can use as cash back when I buy a car (new OR used).  So every 5 years, after buying a vehicle, I call the credit card company, fax them my sales invoice, and they send me a check for the amount accumulated.  

I bought my wife a used mini-van last January (and received a check for close to $2,300) and have already amassed $900 on the card for the next vehicle I'll buy.  Keep in mind the reason my returns are so high is becuase I put EVERYTHING on the card...and then pay it off every month.  So...I earn interest on their money (since it sits in my checking account until I pay it) AND they send me a nice fat check every time I buy a car, just because I'm using their card.

Again, it's not about getting bothered, but if someone wants to hand me $500 a year...I'm not going to turn it down - that's just crazy!

I guess it depends on what you put on a credit card. I'm financially sound and was raised with the philosophy "if you can't pay cash for it, you clearly don't need it."

I don't particpate in rewards cards specifically because I don't spend enough in a year to get back more than the annual fee those things cost. So I put that "reward/fee" in my IRA and call it a day. And before anyone starts in on how can that be ?..... , I shop at greenmarkets, flea markets and don't drive. No need to put the majority of groceries or gas on a credit card. It makes the rest of my annual purchases pretty much miniscule in terms of being "rewarded" for buying.

Who stilll uses credit cards that have annual fees?!?!?  Thinking someone needs to do a little research because fee-based cards are few and far between anymore.

(And I put everything on the card - cable bill, electric bill, phone bill...cell phone - heck, I'd throw the house payment on there if I could, cause I'd get even MORE money back, thereby cutting the price of my house.  It has absoluely nothing to do with what you can afford if you pay it off every month.)

I guess some people just refuse to learn.

As I stated earlier Walmart does NOT want the business of "the class of people who use layaway" their words not mine and taken from the press release stating they were discontinuing layaway completely.

Maybe this year Walmart will realize what a mistake they made!

Wal-Mart sucks and I hope they fail and go bankrupt.  'the class of people who use layaway'??  What 'class' would that be?  I didn't realize Wal-Mart's client base could bottom out further than it already is!

Like I said - I hope they bankrupt.

"Class of People" That is insulting. But they have you believing you'll save a ton of money but you must be from the right class. Is Obama and Oprah shopping there?

What "class of people"  is not good enough for Walmart????  When did the Vanderbilts start shopping at Walmart??? I didn't realize that Walmart of all places, had a "class of people" standard.  You would not know it to walk in there.  Not to disparage Walmart shoppers, but they don't go to Walmart for the quality of their merchandise or the high level of service they obtain from the "associates"  They go because the prices are lower than they can get elsewhere.  The "class of people" who shop at Walmart are not better than the class that shop anywhere else, they are simply looking to stretch an ever-shrinking paycheck as far as it will go, even if it means buying substandard, poorly constructed, and possibly toxic goods from sweatshop industries in third-world countries and China.  I am sure that this "class" of shopper would gladly go elsewhere if they could.  Walmart has some nerve with it's superior attitude about shoppers, but certainly very little "class!"  Just sayin'

That is insulting..I can afford to shop elsewhere I choose there to save some money and I am sure many others have too, matter fact I have seen some real uppties in there trying save abuck, and many elderly on fixed income rely on them for prescriptions, I am glad I don't shop there anymore, there stuff is not superior like they think !!

You probably have Wal-Mart to thank for Kmart being closed down....

We still have a Buringtonin Evansville, I love it, i can buy my leather coats/suits/wallhangings and put them in layaway for 30 days with a fee of only 10 bucks.....

I might have to pay them a visit on thursday..... :)

Ditto!  It has been YEARS since I used layaway... used it alot when I was single and newly married.  I didn't think it even existed anymore!  I'm so excited to hear that it is still around, and is actually making a come back :)

I'd like to take my two sons out and show them how it works..what a great way for them to learn how to buy responsibly, make timely payments - but without the 'instant gratification'.  I think this is awesome... Burlington, here I come :)

That's right there's no age restrictions on lawaway.....

I'm all for it mdowning! Do it....

I agree with you Kmart girl.  Things do happen that are unexpected...and I love the idea of doing layaway instead of charging!! 

Exactly Kmartgirl, no mailbox trips and savings is for those emergencies, why dip when ya can use layaway !!

I have to agree with you stumel.. buying toys or things like personal toileteries and cleaning products is a good bargain at Kmart - but much like Wal-Mart, their clothing is horrible (quality). I guess that's what 'made in China' will get you..

Depends on what clothing you buy.  The Wrangler and Dickies products are good if that is what you need.  I don't buy my cloths there but it is because Kmart doesn't carry my prefered styles not because of any perceived quality problem.  The last sox and underwear I purchased came from Kmart and the quality of them has proven to be excellent. 

While I share your sentiment, I sadly see more and more in this nation wanting to do away with the thoughts of the birth of our savior while simultaneously spinning our country into a direction of deceit and debauchery under the guise of "ultimate freedom".

Not meaning to hijack the thread, but looking back to the Christmas classic, "It's a Wonderful Life" it's almost ironic to think that the image of life without George Bailey, the life where the city turned to a den of strip clubs and sex, crumbling in on itself with complete immorality - that's where we're heading...and people seem to be not only ok with it, but embracing it.

Did they know something back in the "naive" days that we seem to completely miss today, in our "enlightened" generation?

Elk,

You are right! Period!  But our materialist world needs more than that.  Some one has to bailout out the stores.

It is so refreshing to see others thinking this way too. I had begun to wonder if any one thought of Christmas as more than a Marketing scheme, and opportunity to further indulge our often undeserving children (bless there little hearts - its the parents to blame for this!).

I've been thinking of ways to pull my kids away from the 'what will I get for Christmas' mentality, and do more volunteering and giving to the community. A few years back, I coordinated a program called 'adopt a family' at my work place. My co-workers (a sizeable group), adopted 5 families. My boys helped me collected all the donated gifts for each family member, wrap them and deliver them to the location that would take the gifts to the families. My boys were so touched by the idea of this, and hearing the stories about each family. On Christmas day, we talked alot about each one of the families we had helped, and my boys expressed how they wished they could go and visit each one of them and share Christmas Day with them.

Wow! It was a great experience. They discovered for themselves how it felt SO MUCH better to give and care, then to just get presents. Thanks to our economic times - I am compelled to minimize the gift giving, and do more of the donating and volunteering... I feel bad that it takes economic hardship to make this a priority again. I hope others will decide to do the same though!

I also forgot to mention, it was 4 years ago that my boys helped me with the 'adopted families'. And they still talk about them today! Particularly at Christmas of course...

the other savvy way of paying for christmas without using layaway or credit cards is to put a little away each month over the whole year, maybe in to a savings account so you can make a little interest as well, then in december you can withdraw the money and buy all your gifts immediately? works for me

I agree, but that is easier said than done in many circumstances.  I haven't used layaway in years - probably because many retailers have discontinued the service, but there were times when it really helped.  When I was a newly wed, when my children were young and my husband & I were just starting out, it allowed me pay for my Christmas purchases a little along without the temptation of withdrawing from savings to cover other unexpected expenses.  When you live on a small or fixed income, a car repair, doctors visit or other unforeseen expense could easily wipe out a savings account.  Children won't exactly understand that Santa missed bringing Christmas because the car broke down.  I've been there.  It is nice to have a backup plan. 

A lot of banks have christmas saving accounts.  Special savings accounts that you put a little into each month.  And deposit into your checking account at a certain time in December.

So, say you save $50 a month into this savings account at the start of January.  By the time December comes around your could have a nice chunk of change to spend at christmas.

4astrongamerica, i do understand it doesnt work for everyone, its just a suggestion to help people

I used to use that service the Christmas club account, I think is what Wells Fargo called it. Then about seven years ago, I went to open one in I think it was Feb. and they said they discontinued it. I asked the girl why and she whisper "We don't make any money on it." They did not charge service fees so it was not a profit point for them.

Well I am all for putting your money in a savings account or setting it aside and having all of it before you make the purchase. I believe in baby steps. If you are a person who charges most of Christmas then pays it in March with your bonus or refund check. Then yes try layaway. It took consumers over a decade to really start using credit it will take some time to get people used to pay as they consume. We have to start somewhere!

Don't know if it is still true but the Christmas club accounts did not pay interest when I considered using them and as a result I would not open one.  No reason to let the bank use my money for free.

Here at work they have a christmas club fund.  I put in 20 a paycheck.  Not much but serves my needs.  that equals to 520.00 I got my first christmas club check and made 47.00 off of it.  I asked at my C.U about one and she said that the rate is only at about .3 or .5%.  It was hardly worth my time.  I need to go to the ING website and see if they have a calculator there for me to use and see if it would be worth my time to get a savings account for christmas instead.

*sighs* our K-mart tanked over 5 years ago.....

I'll have to goto KY to find one.....

Wow as you can tell by my name I am from So Cal. I did not realize that Kmart had left so many communities. I am sorry to hear this.

I agree, it is hard to ween ourselves off of credit. And I would love to see us go back to cash only. I am a single parent now, I ended up with a lot of debt from the divorce and it killed my credit. From that point forward, I used only cash. Bought only what I could pay for with cash, and paid off ALL the debt. It was FANTASTIC! But then, I needed to get a loan to pay for private tutoring for my son who has learning disabilities. The tutoring was not cheap, but did offer loan options. Can you believe that although my credit was good - in the sense of no debt or late payments to show for etc... I couldn't get the loan?! They said it was because I didn't have any 'recent large credit debt' with good payment history to show for. Another words - because I had not been putting myself into debt for a number of years, I now was considered a risk for any credit. What?! I make $65k a year, and had no debt!

So, the bottom line here is, not only is it tough to ween yourself off of credit, the American financial industry and economic market has made it a BAD thing to not use credit. That is just messed up.

Mdowning- actually your struggle with getting a loan was probably based on your credit history it sounds like, but not how you think. A bunch of people don't realize that cancelling credit cards adversely affects you credit worthiness as well. Sounds tricky doesn't it.

If you pay off a card and then cancel it, you end that particular line of credit. That affects credit history which can be 15-30% of your actual score. That is why you should never cancel your oldest card and make a charge on it every once in a while (paying it off that month) just to make sure it isn't considered dormant/inactive.

I didn't cancel any of my credit cards, I just cut them up and threw them away - completely stopped using them. Apparently, that was a bad thing to do. I was not that savvy about how to BUILD your credit. I was working on how to get out of debt. I've educated myself further since then (thank goodness), and have learned that I should have continued to use those cards, but paid the balance off immediately. That would have helped.

The other issue that worked against me is that I didn't have any LARGE loan amounts in my recent past to account for. I lived on cash only for almost 7 years (hard to believe...I know). No mortgage, no loans, bought used vehicles with cash etc.. In the world of credit worthiness, that was a mistake. It would have been to my advantage to at least bought a car with a loan. That would have increased my 'credit worthiness' with the tutoring loan place, and they would have given me the full amount of the loan I needed.

Unfortunately, living 'cash only' doesn't really work out for the best. Doesn't mean you have to 'go into debt', but you do need to use credit to your advantage and show that you are responsible with it. Otherwise, it won't be there for you when you do need it.

Christmas Clubs for banks? Never heard of it.....

How does that work...?

Christmas clubs were a program that allowed you to open a savings account for Christmas into which you made regular deposits, drew a small (very small) amount of interest and then were able to receive a check in November for the amount of your account.  It was basically for those that did not have the disclipline to save on their own.  I think many banks still offer this type of account, although I have never used one.  I think there is a penalty involved if you close out the account before the time you are supposed to withdraw your Holiday money, or you don't get the interest, or something that makes it worth your while to keep the account until the holidays. It has been a long time since I have seen this type of account used.  Just sayin'

Thank you for the info Fazool, hmm, this type of club wouldn't work for me, because i don't spend alot of money during this time of the year ( a simple gift-card to my relatives and some ties to my dad always work)...........

Actually, I work for a large regional bank and we do still have Christmas Club accounts.  They don't pay much interest, but what does right now (currently 1%).  There is no fee for this service unless you withdraw from or close the account early.  They will even auto debit regular payments from your checking account to your Christmas Club account and then disburse checks to all account holders the first week of November.  This is really a wonderful budgeting tool for those of us that enjoy Christmas giving and don't enjoy going into debt for it.

This sounds very cool. I wonder if my bank does this...I plan to call and find out! Thanks for sharing!

AfricanzMadMan.........Credit Unions usually offer Christams and Vacation clubs.  The Xmas pay out in in early November and the Vacation payout  in Feb or March. You can use it for whatever you want it's just has a set payout date...designed for these to events

mad one-380009, how you doing?

Yeah, but I don't take vacations, there's just too much to do around here at home.....

Can you use it to buy or save for future buys?

Wells Fargo did away with there years ago. They stated there was no profit in it for them.

Typical of a bank.