Layaway represents a purchase agreement where a retailer reserves an item for a customer who, in turn, makes regular payments over a defined period. Once the total price is paid, the customer receives the merchandise. This arrangement is often utilized for larger purchases that might strain a budget, allowing individuals to secure items without incurring immediate full payment. For example, a customer might use this system to secure holiday gifts well in advance, paying them off gradually.
The benefit lies in its accessibility, offering a payment solution for individuals who might not have or wish to use credit. It provides a disciplined method of saving for a desired product, ensuring its availability when funds are fully accumulated. Historically, this system gained popularity during periods of economic downturn, serving as a practical alternative to credit-based purchasing.
