Layaway, other changes irk Wal-Mart loyalists

[piemaker720]

http://www.msnbc.msn.com/id/20481508/

But that ended last year when Wal-Mart eliminated the layaway program, leaving many customers seething about the change — and fretting about what to do this holiday season.
The move is especially jarring to some families because it has come amid other changes Wal-Mart has made, including cutting back on fabric departments and stocking more trendy clothes, as the discounting titan tries to appeal to a broader swath of shoppers, including more upscale consumers. Those changes, some longtime shoppers say, has made them feel like the store is less interested in catering to its traditional and loyal market of family shoppers on tight budgets.
Patricia Edwards, an analyst with investment firm Wentworth, Hauser and Violich who owns shares in Wal-Mart, remembers visiting a Wal-Mart on the day after Thanksgiving a couple years ago and being surprised to see that the longest line in the store was for the layaway department.
The system is still offered by rival Kmart, although most large retailers have long since gone exclusively to more modern payment forms including credit and debit cards, citing the cost and hassle of managing layaway programs.

I agree that stopping the layaway could lose shoppers business. I know this year when it came time to purchase school uniforms we went to Kmart so we could put them on layaway. We did not buy any from Wal-Mart. When you have more than one child it helps to be able to put things on layaway and pay it out.

[Texasbelle]

The people who need to use layaway could get the same effect by using a savings account!

[piemaker720]

Originally Posted by Texasbelle

The people who need to use layaway could get the same effect by using a savings account!

Not really, that's easy to say when you don't rely on layaways to help buy for more than a couple of kids.

[howela]

Mrs. howela used to Christmas shop everything on lay-away when our children were young. She could set aside $500 worth of gifts for $50 and shop early when the crowds were smaller and selection was best.
Now the kids are grown and gone and I don't get anything for Christmas.
♪♫ ♫♫ ♪♪ ♪♪ Oh I believe...♪ ♪♫ in yesterday...♪♫ ♫ ♫♪ ♪ ♪♪

[joepole]

It's also easy to say if you have even a basic understanding of how credit and banking works. Actually, you don't even have to do that, you just have to realize that Wal-Mart taking your money from you doesn't make you pay anything off faster, you're just as well off using a coffee can, they're not going to run out of school uniforms while you save up.

[Texasbelle]

Pie, What is the difference in you tucking away say $10 a week or $20 a week in a Joe suggested coffee can or a T'belle suggested savings account (that's the cost of the whole McDonald's meal you order by the way) AND placing something on layaway at WalMart? Nothing. At the bank you actually could make some money off of interest if you'd do this every week for 52 weeks of the year regardless of the need, school clothes or Christmas.

[Pocahontas]

It's not the best way but you can use a credit card too Pie and pay it off over time. Isn't that similar to layaway? I'm not real sure how it works?

[piemaker720]

Originally Posted by Pocahontas

It's not the best way but you can use a credit card too Pie and pay it off over time. Isn't that similar to layaway? I'm not real sure how it works?

No, on credit cards you pay interest on the balance you owe each month, so you are paying more money for items. On a layaway you are not paying interest, you make a payment and you can see exactly what you owe each time. As for the can, if people would admit it, if you had a can and was putting $5.00 a week in for something special. If something came up you would not be tempted to use the money, if your child came in and needed money for something you would not use the can money thinking I'll put it back later. Now for savings account, I have figured this for everyone to see.

Capital One Savings 5.00% ? <-> $100 min

ING Direct Savings 4.50% QFX OFX $25 bonus for new accts with $250 deposit

CitiBank eSavings Savings 4.75% ? ? Requires CitiBank EZ-Checking account
which may charge fees

HSBC Direct Savings 5.05% QFX OFX New money promotion: 6.0%

Regular Passbook Savings: An interest bearing savings account available to anyone. Interest is added to the account quarterly.

$10.00 a week for 3 months equals $120.00 that's 1 quarter
5% interest on $120.00 a quarter equals $6.00
That is if they pay 5%, some pay less than that.

[Texasbelle]

Originally Posted by piemaker720

No, on credit cards you pay interest on the balance you owe each month, so you are paying more money for items. On a layaway you are not paying interest, you make a payment and you can see exactly what you owe each time. As for the can, if people would admit it, if you had a can and was putting $5.00 a week in for something special. If something came up you would not be tempted to use the money, if your child came in and needed money for something you would not use the can money thinking I'll put it back later. Now for savings account, I have figured this for everyone to see.

Capital One Savings 5.00% ? <-> $100 min

ING Direct Savings 4.50% QFX OFX $25 bonus for new accts with $250 deposit

CitiBank eSavings Savings 4.75% ? ? Requires CitiBank EZ-Checking account
which may charge fees

HSBC Direct Savings 5.05% QFX OFX New money promotion: 6.0%

Regular Passbook Savings: An interest bearing savings account available to anyone. Interest is added to the account quarterly.

$10.00 a week for 3 months equals $120.00 that's 1 quarter
5% interest on $120.00 a quarter equals $6.00
That is if they pay 5%, some pay less than that.

But Pie, that is $6.00 you wouldn't have had before!!! How much do you typically spend on Christmas on say two kids? Say $1000.00. You could take the $1000 divide it by 42. The 42 weeks would be from Jan to mid November. You'd have your money saved by the time of Thanksgiving so you could shop the day after Thanksgiving sales. If you saved $25 a week which is skipping one meal a week of eating out, you would have saved $1090 plus the interest. If you put it in the bank savings account and consider it untouchable, then there is no problem. It's all about making choices which benefit you best.

[rhertz]

Originally Posted by Texasbelle

The people who need to use layaway could get the same effect by using a savings account!

Tbelle, you are starting to sound just like joepole! hehehehe

[piemaker720]

Originally Posted by Texasbelle

But Pie, that is $6.00 you wouldn't have had before!!! How much do you typically spend on Christmas on say two kids? Say $1000.00. You could take the $1000 divide it by 42. The 42 weeks would be from Jan to mid November. You'd have your money saved by the time of Thanksgiving so you could shop the day after Thanksgiving sales. If you saved $25 a week which is skipping one meal a week of eating out, you would have saved $1090 plus the interest. If you put it in the bank savings account and consider it untouchable, then there is no problem. It's all about making choices which benefit you best.

That may be but there is one thing more. If say I went in a store and saw something I thought one of the kids would like. I would put it on layaway and have it. Now what if I saw something and I said okay I'll start saving for that now. I go back in as you put it 42 weeks, I find out that the store has no more, sold out, ain't getting anymore, then what, I lost my chance to have gotten it. And no I don't spend a $1000 on 2 kids. Layaway is a convience.

[Texasbelle]

Originally Posted by rhertz

Tbelle, you are starting to sound just like joepole! hehehehe

I know you didn't.

:showthrow:

Rhertz, I was just trying to encourage a friend to do something different and you have to insult me. Hopefully, one of those shoes hit your backside!

[Texasbelle]

Originally Posted by piemaker720

That may be but there is one thing more. If say I went in a store and saw something I thought one of the kids would like. I would put it on layaway and have it. Now what if I saw something and I said okay I'll start saving for that now. I go back in as you put it 42 weeks, I find out that the store has no more, sold out, ain't getting anymore, then what, I lost my chance to have gotten it. And no I don't spend a $1000 on 2 kids. Layaway is a convience.

Well, Pie , I hate to be the bearer of bad news but most kids only like what's popular right here and right now. So whatever you buy in Jan, March, or June, they probably will be disinterested in by December! Just try the saving situation, you'll like it!

[rhertz]

Originally Posted by Texasbelle

I know you didn't.

:showthrow:

Rhertz, I was just trying to encourage a friend to do something different and you have to insult me. Hopefully, one of those shoes hit your backside!

LOL, you are exactly right! I was trying to give you a compliment!

[Isaac-Saxxon]

I hope Wal Mart does not find out about your Micky D's banishment