 TITLE: Layaway or Credit: Which Is Best? CONTENT: How Is Layaway Different From a Credit Account?\n-----------------------------------------------\nA layaway plan and a credit card are similar only on the surface. Before you enter into either arrangement, understand the important distinctions between the two.\nFor both layaway and credit cards, you'll be paying over time and sending at least a minimum payment amount. If you fail to meet the terms of the agreement, at least some penalties and fees will be assessed.\nWith a credit card, though, your purchase will go through immediately because you're using a lender's money—not yours—to pay. Interest is added to the balance if you carry it month to month. Credit cards may be used continually for additional purchases until the account is closed.\nWith layaway, there are no interest charges. You are drawing from your own funds to pay, but you must complete every agreed-upon payment before the item on layaway is yours to keep. A layaway agreement covers one item; any additional layaway agreements must be made independently. END