Paying by LAY-BY

One alternative to buying on credit from large stores is lay-by. This is when you can pay a deposit on an item or items and pay for the item over an agreed time period. The time periods are usually 3 or 6 months although on larger items it can be longer depending on the retailer. When you have finished paying for the item you are then able to take it home. Buying things on lay by can be very convenient if you are buying for an event, like Christmas, where you have to buy a lot of things at once but don't need them until the event.

Making the payments over time can take the sting out of big events. In addition, not having to pay interest means you are paying only for what you buy and not up to 25%/per year more as you would if you bought by a store credit card.

For items such as furniture or large electrical goods, some stores offer a payment plan with no interest. The idea is that you must purchase goods from the store for a minium of $500. You then pay a one third deposit and the remainder of the payments are divided up into equal payments over o rime period of usually 24 or 48 months.

Example: You purchase goods to the value of $1500, you pay a deposit of $500, the remainder of the payments are divided over 24 months with no interest, the payments being $41.66 per month.