Consumers avoid credit card debt with layaway

Some consumers who are trying to avoid additional credit card debt have opted instead to make purchases on layaway, a practice that faded in popularity as credit cards became more common, according to a report in the Buffalo News. With this method, a consumer makes a purchase over the course of a short amount of time, rather than all at once, and only gets the item once the total owed is paid in full.

As a result, more stores are starting to bring back the practice, with popular retailers like Burlington Coat Factory, Sears and Kmart either expanding or reintroducing their layaway options, the report said. Consumers without enough cash on hand to make a sizeable purchase all at once may find this method preferable to one resulting in more credit card debt.

Many consumers have made a more concerted effort to reduce their reliance on credit card debt in recent months thanks to the national economic downturn.