That gorgeous cashmere sweater you got your mother for Christmas may have left you starting the New Year with a credit card bill that is accruing a nasty amount of interest. Not such a fun way to end the festive holiday season! What can you do to avoid digging yourself into debt buying gifts for your friends and family? Take our quiz and learn about an alternative credit option: layaway.
How much does the average American spend on holiday shopping?
$ 232. 26
$ 432. 36
$ 832. 36
What is the best way to avoid overspending during the holiday season?
Avoid shopping then; this time of year is when they hike up the prices.
Use cash instead of your credit card.
Try and make your gifts homemade; they're more meaningful anyhow.
When was the concept of layaway introduced to the market?
during the Depression of the 1930s
during the economic recession of 1981-1982
during the Scandinavian Banking Crisis in 1989
Why did the layaway system fall out of fashion?
Stores did not keep good records, so people often lost items they had partially paid for.
Using credit cards became a more popular option.
People prefer the instant gratification of taking an item home immediately.
Why have stores revived the layaway system?
They are always looking for innovative ways to attract customers.
Research showed more purchases were made when layaway was an option.
People are trying to avoid the debt incurred when using a credit card to make a purchase.
What happens to your credit score if you default on your layaway payment?
drops by several hundred points.
only slightly damaged
How much do Americans spend on credit card purchases?
What is the major disadvantage of the layaway system?
You need to return to the store to pick up the item.
It may not save you money in the long run, because you'll miss out on sales.
You need to be organized and think ahead.
Which company is a corporate leader in the layaway revival?
Under what circumstances is it fine to swipe that bit of plastic?
If you are making a last-minute purchase.
If you can pay the credit card bill before it accrues interest.
If you really need the instant gratification of taking home a purchase the day you buy it.