LAYAWAY PLAN Meaning and
Definition
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A layaway plan refers to a payment structure offered by retailers to customers, allowing them to reserve and purchase products over an extended period. Under this agreement, customers can opt to pay for products in installments rather than making a full payment upfront. Layaway plans are generally utilized when customers are unable or prefer not to pay for their desired products in a single payment.
The process typically entails selecting an item, depositing a portion of the total cost, and agreeing upon a fixed payment schedule. Once the down payment is made, the retailer reserves the product, holding it until the customer completes all payments. Unlike traditional credit-based purchases, layaway plans do not involve interest charges or require credit checks, making them an appealing option for individuals with limited access to credit or who do not wish to incur additional debts.
The layaway plan structure provides a budget-friendly approach, allowing customers to secure and budget for high-value items by spreading costs over time. However, it is essential to meet payment obligations promptly to prevent the cancellation of the agreement and potential loss of the reserved item. Layaway plans have gained popularity during holiday seasons or special sales events, enabling customers to secure popular products before they run out of stock. Retailers often outline specific terms and conditions, such as non-refundable deposits or cancellation fees, to protect both parties' interests.
Common Misspellings for LAYAWAY PLAN
- kayaway plan
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Etymology of LAYAWAY PLAN
The word "layaway" originated from the combination of two separate words: "lay" and "away". "Lay" comes from the Old English word "lecgan", which means "to place" or "to lay down". "Away" is derived from the Old English word "aweg", meaning "onward" or "away". Thus, the term "layaway" refers to setting something aside for later.
The concept of layaway plans can be traced back to the early 20th century. It was primarily introduced by department stores as a way to help customers purchase items they may not be able to afford immediately. The customer would select an item, pay a deposit, and the store would hold it until the full payment was made. This allowed people to make regular payments over time instead of paying the full amount upfront. The popularity of layaway plans grew during the Great Depression when individuals faced financial difficulties.
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