Christmas Surpise -Layaway Payoff

[geek42]

This is amazing that someone with a spare 100k feels the best method of blessing people is to pay their layaway items off. I suppose that I wouldn't be surprised if it were a store who could ensure they still made a profit but I find it hard to imagine being motivated to bless people in this manner. I don't want to actively berate this person because its a blessing and a gift and their money to do with as they wish but the mind that would give this gift works so differently than mine I'm not sure how to even put myself in their shoes.

http://www.foxnews.com/us/2015/12/17/mystery-man-pays-off-106g-in-walmart-layaway-tabs-at-2-ohio-stores/

[trailrated]

Eh, to each their own. If they have the spare money who am I to tell them how they should spend it. Who knows maybe it will inspire one of the recipients to get their finances in order so they have the resources to do something similar one day.

[steviesterno]

the cynic in me can't help but think it's just a really cheap way for the store to advertise. I'm sure front page stories and web articles cost more than 100k to run, and puts their name and pictures in everybody's mind. I feel that way with some of the starbucks bashing. really? red cups are anti-christmas and the polar bears had their throats slit? it's all just a BS ploy to get the name out there.

How easy would it be to pull off and nobody knows? Super easy. Random joe starbucks accountant (or his close friend) pulls into a starbucks, gives them $1000 in pay it forward money. news picks up that people have been paying for each others drinks all day, and real people want to join in. So they do, spending real money. it's cheap and easy press, and I don't buy it. 

[SailorGirl]

A friend benefited from a similar event in PA:  http://abc27.com/2015/12/14/its-going-to-be-a-great-christmas-secret-santa-gives-major-gift-to-layaway-shoppers/

They had preemie twins almost four years ago and although they've been trying to rebuild resources, the medical bills and mom being unable/unwilling to work for almost a year completely wiped them out. The kids will have a good Christmas this year.  :)

[steviesterno]

to be sure, I don't think it's all shady. Here at work we donated time and money and came up with almost $3000 worth donations for Toys for Tots. nice to actually give gifts directly to kids that need it in our area.

[TheAnonOne]

to be sure, I don't think it's all shady. Here at work we donated time and money and came up with almost $3000 worth donations for Toys for Tots. nice to actually give gifts directly to kids that need it in our area.

'Need' is a strong word when it comes to toys.

Either way, this was non-discriminatory, in that, even if I was a billionaire and had lay-away it was covered.

[charis]

I think layaway is great and I am glad that people are still doing it.  I still remember saving and trying to earn money to buy a dress on layaway in the fifth grade.  It was a good lesson for several reasons.

We are really picking on low income people for making a relatively decent financial decision and those wanting to give poor kids something on Christmas?  That is troubling to me.

[slugline]

My number one critique of layaway is that -- pretty much by definition -- it's used on consumer crap that people don't need right away. Guess what? They keep making more and they're not stopping anytime soon! Just save up the money and trust that there will be something suitably crappy to buy when you have enough. :)

[domo]

Layaway is so much better thank payday loans or credit cards. Honestly folks, I am so freaking tired of the blame that gets thrown at poor folks who make good decisions! Layaway is what you have to do if you need to ensure something is still there once you have the money for it. The thing about being poor is that everything is an emergency.

Layaway was the way my parents bought our winter coats, boots, sneakers, tires, and Christmas. My parents were anything but lazy. They got pregnant in high school and got married. My dad had two, sometimes three jobs and my mother was in nursing school. She developed a slipped disk before graduating. They still had to pay back her student loans. So she took a bank teller job and then a receptionist position. Later on her back deteriorated so bad she couldn't walk. We didn't know it at the time, but she had a malformed vertebrae. It was always going to happen. Dad ended up making $90k a year at a good job. Not bad for someone who dropped out of high school to be a father.

I'm well off because my parents instilled a good work ethic in me and taught me the lessons they learned about how to be poor successfully. Because it is a skill. If you know nothing about money, a pay-day loan may seem like a life-saver when your car breaks down. Knowing how to be poor successfully allowed me to reduce the amount of money I needed to borrow during college, pay off my student loans early, and save a decent percentage of my paycheck when I was still making $30K a year.

Not all poor people are ignorant, and the ones who are can learn. They won't learn if everyone is too busy sneering at them to teach them.

[MsPeacock]

Layaway is so much better thank payday loans or credit cards. Honestly folks, I am so freaking tired of the blame that gets thrown at poor folks who make good decisions! Layaway is what you have to do if you need to ensure something is still there once you have the money for it. The thing about being poor is that everything is an emergency.

Layaway was the way my parents bought our winter coats, boots, sneakers, tires, and Christmas. My parents were anything but lazy. They got pregnant in high school and got married. My dad had two, sometimes three jobs and my mother was in nursing school. She developed a slipped disk before graduating. They still had to pay back her student loans. So she took a bank teller job and then a receptionist position. Later on her back deteriorated so bad she couldn't walk. We didn't know it at the time, but she had a malformed vertebrae. It was always going to happen. Dad ended up making $90k a year at a good job. Not bad for someone who dropped out of high school to be a father.

I'm well off because my parents instilled a good work ethic in me and taught me the lessons they learned about how to be poor successfully. Because it is a skill. If you know nothing about money, a pay-day loan may seem like a life-saver when your car breaks down. Knowing how to be poor successfully allowed me to reduce the amount of money I needed to borrow during college, pay off my student loans early, and save a decent percentage of my paycheck when I was still making $30K a year.

Not all poor people are ignorant, and the ones who are can learn. They won't learn if everyone is too busy sneering at them to teach them.

+1

Thank you. The assumption that layaway is just used for "consumerist crap" is pretty offensive. I guess that the posters who say this never ever ever buy anything remotely "consumerist, have never been short of money for critical items, and do not purchase gifts for holidays or birthdays (unless it is totally something unconsumerist).

[crispy]

Layaway is so much better thank payday loans or credit cards. Honestly folks, I am so freaking tired of the blame that gets thrown at poor folks who make good decisions! Layaway is what you have to do if you need to ensure something is still there once you have the money for it. The thing about being poor is that everything is an emergency.

Layaway was the way my parents bought our winter coats, boots, sneakers, tires, and Christmas. My parents were anything but lazy. They got pregnant in high school and got married. My dad had two, sometimes three jobs and my mother was in nursing school. She developed a slipped disk before graduating. They still had to pay back her student loans. So she took a bank teller job and then a receptionist position. Later on her back deteriorated so bad she couldn't walk. We didn't know it at the time, but she had a malformed vertebrae. It was always going to happen. Dad ended up making $90k a year at a good job. Not bad for someone who dropped out of high school to be a father.

I'm well off because my parents instilled a good work ethic in me and taught me the lessons they learned about how to be poor successfully. Because it is a skill. If you know nothing about money, a pay-day loan may seem like a life-saver when your car breaks down. Knowing how to be poor successfully allowed me to reduce the amount of money I needed to borrow during college, pay off my student loans early, and save a decent percentage of my paycheck when I was still making $30K a year.

Not all poor people are ignorant, and the ones who are can learn. They won't learn if everyone is too busy sneering at them to teach them.

Agreed. I didn't have a lot growing up, but what new clothes and Christmas gifts I did get were because of layaway.  It's a pretty smart thing actually - basically a no interest loan and much better than a high interest rate credit card.

[Papa Mustache]

We used layaway many times when we were younger. Its one of the few bright spots in consumer land i.e. no charge/no interest to warehouse an item until you can pay it off.

[TheGrimSqueaker]

I bought my first vehicle (used) on what amounts to a layaway plan. It's because I was willing to put most of the money down and pay the extra few hundred off in instalments over the next few weeks.

[Gone Fishing]

I always assumed there was interest on layaway items.  Interesting to hear that there isn't (at least at Wal-Mart).  Looks like the only way to lose is to cancel and take a $10 hair cut, which isn't too terrible. 

[charis]

I always assumed there was interest on layaway items.  Interesting to hear that there isn't (at least at Wal-Mart).  Looks like the only way to lose is to cancel and take a $10 hair cut, which isn't too terrible.

Yes, the whole advantage/point of layaway is that there is no interest.

[chouchouu]

I always assumed there was interest on layaway items.  Interesting to hear that there isn't (at least at Wal-Mart).  Looks like the only way to lose is to cancel and take a $10 hair cut, which isn't too terrible.

Layaway is the poor mans credit card and much more expensive! I mean lets assume the item being bought is winter clothes and not toys. You put down $100 worth of clothes on layaway for a $10 fee. You pay off the layaway in two months and take your goods. That $10 service fee is equivalent to 60%, no credit card charges so much! How about the person save their money and buy the items outright instead? It makes no sense to me. It's basic applied math.

[Rural]

I always assumed there was interest on layaway items.  Interesting to hear that there isn't (at least at Wal-Mart).  Looks like the only way to lose is to cancel and take a $10 hair cut, which isn't too terrible.

Layaway is the poor mans credit card and much more expensive! I mean lets assume the item being bought is winter clothes and not toys. You put down $100 worth of clothes on layaway for a $10 fee. You pay off the layaway in two months and take your goods. That $10 service fee is equivalent to 60%, no credit card charges so much! How about the person save their money and buy the items outright instead? It makes no sense to me. It's basic applied math.

There's no fee for Walmart layaway (unless you cancel).


http://help.walmart.com/app/answers/detail/a_id/232/~/walmart-layaway

[charis]

I always assumed there was interest on layaway items.  Interesting to hear that there isn't (at least at Wal-Mart).  Looks like the only way to lose is to cancel and take a $10 hair cut, which isn't too terrible.

Layaway is the poor mans credit card and much more expensive! I mean lets assume the item being bought is winter clothes and not toys. You put down $100 worth of clothes on layaway for a $10 fee. You pay off the layaway in two months and take your goods. That $10 service fee is equivalent to 60%, no credit card charges so much! How about the person save their money and buy the items outright instead? It makes no sense to me. It's basic applied math.

Why did you think there is a fee?  As with Walmart, as mentioned above, the layaway programs that I've seen have never had fees.

[TheAnonOne]

I always assumed there was interest on layaway items.  Interesting to hear that there isn't (at least at Wal-Mart).  Looks like the only way to lose is to cancel and take a $10 hair cut, which isn't too terrible.

Layaway is the poor mans credit card and much more expensive! I mean lets assume the item being bought is winter clothes and not toys. You put down $100 worth of clothes on layaway for a $10 fee. You pay off the layaway in two months and take your goods. That $10 service fee is equivalent to 60%, no credit card charges so much! How about the person save their money and buy the items outright instead? It makes no sense to me. It's basic applied math.

Why did you think there is a fee?  As with Walmart, as mentioned above, the layaway programs that I've seen have never had fees.

Agreed ^

I have never seen a fee. Though, I have never been in the position where I couldn't afford something and still needed it that badly.

[domo]

Layaway is the poor mans credit card and much more expensive! I mean lets assume the item being bought is winter clothes and not toys. You put down $100 worth of clothes on layaway for a $10 fee. You pay off the layaway in two months and take your goods. That $10 service fee is equivalent to 60%, no credit card charges so much! How about the person save their money and buy the items outright instead? It makes no sense to me. It's basic applied math.

What on earth are you talking about? A credit card is far worse. With cards there is no limit to how long you can carry a balance, constantly incurring interest  - plus fees! Layaway is for a set period of time, starting in August, ending in December. The $10/10% is a down payment, you do not lose any money if you pay in full: http://www.walmart.com/cp/Layaway/1088466

As for why layaway is better than saving the money first, layaway items are locked into the current price. Lots of stores increase prices so they can dramatically drop them right before Christmas. Also, if the item is likely to be sold out, layaway is a good way to ensure it will still be there when you can afford it.

[maco]

I think layaway is great and I am glad that people are still doing it.  I still remember saving and trying to earn money to buy a dress on layaway in the fifth grade.  It was a good lesson for several reasons.

We are really picking on low income people for making a relatively decent financial decision and those wanting to give poor kids something on Christmas?  That is troubling to me.

Ok, I always had the impression that if you missed a layaway payment, the item went back on the shelf, and you didn't get a refund--like when you miss a pawn shop payment. Thus, I thought it was a terrible idea to ever do and super abusive toward poor people. Have I been mistaken?

[charis]

I think layaway is great and I am glad that people are still doing it.  I still remember saving and trying to earn money to buy a dress on layaway in the fifth grade.  It was a good lesson for several reasons.

We are really picking on low income people for making a relatively decent financial decision and those wanting to give poor kids something on Christmas?  That is troubling to me.

Ok, I always had the impression that if you missed a layaway payment, the item went back on the shelf, and you didn't get a refund--like when you miss a pawn shop payment. Thus, I thought it was a terrible idea to ever do and super abusive toward poor people. Have I been mistaken?

Super quick googling indicates item will go back on shelf one week after a missed payment and money is refunded minus the cancellation fee (generally $10).

[MayDay]

My mom bought stuff on layaway when we were super poor (dad in grad school, mom worked nights).  I don't know what all- I will have to ask her.  The advantage I have heard is that you can put stuff on layaway while it is on sale, and get that price, even if you don't have the money yet.  Plus, you know, interest free loan, which poor people pretty much can't get any other way. 

[southern granny]

In our town every year, the same man goes to a store and spends $1,000 to pay off lay-a-ways.  His identity is not told.  He says the reason is because when he was a child, they were poor and his mother went every january and put presents on layaway for the next Christmas and paid on it all year.  He is apparently well off now, and does this in memory of his mother.  I think it is very sweet.