 TITLE: Layaway or Credit: Which Is Best? CONTENT: How Does Layaway Work?\n----------------------\nImagine you're in the market for a refrigerator to replace one that seems to be on its last legs. You find a great one for $1,000 at your favorite department store. Unfortunately, cash is tight and you either can't or don't want to use a credit card. Rather than give up, you may be able to buy it using layaway. Here's how it would work: After making a down payment of $100 plus a $5 service fee, you agree to pay the remaining $900 in four equal monthly installments of $225. After four months, the refrigerator is yours to take home.\nTerms may differ depending on the retailer, but that's generally how all layaway plans will go.\nLimitations or requirements on layaway can include:\n*   Some products may be excluded, such as gift cards, sale items and fine jewelry.\n*   The store \"holds\" the item for a specified length of time. Layaway plans can be 30 days on up to many months.\n*   A payment schedule is set. You may have to make weekly or monthly installment payments.\n*   There may be a minimum purchase price, such as $50 or $100.\n*   Fees may be imposed, which could be a nominal amount to set up the service, and for cancelation and restocking.\n*   Layaway items generally can be paid off early.\n*   Canceling a layaway may incur a fee. END