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Lay-by makes it easy

From Money Magazine, October 2004

For upcoming birthdays, events, festive dates etc it's often best to decide in advance what to buy and how much to spend. The time-honoured lay-by system permits us to do this and enforces a clear spending plan.

With lay-by you place the goods on hold with a deposit. Regular instalments are then paid until it is paid off over a fixed period. Many stores offer this service as an alternative to using a store card or credit card.

You will find with lay-bys that there are rarely any credit charges involved, usually only the initial deposit fee which is reduced from the total amount.

Make sure you read and understand the fine print of your lay-by receipt, and ask any necessary questions – you don't want to breach any terms and conditions. When cancelling a lay-by, be aware that there may be a cancellation fee.

For the complete story see Money Magazine's October 2004 issue. Subscribe now.