5 Tips to Shopping Layaway on Black Friday

It’s the holidays again, and still the recession lingers on. So retailers are dusting off and bringing back the tried and true "layaway" for purchases.

Most people may remember that layaway used to be more common than it is today, due to the mass utilization of credit cards. In September 2006, Wal-Mart announced that layaway services would no longer be offered, citing the decrease in demand.

But on Sept. 8, 2011, Wal-Mart announced that the service would be restored due to the economic realities imposed by the economy and the increased constraints on consumer credit. JC Penney, Sears and many other traditional department stores are hyping their layaway as the next best thing.

Layaway serves as an alternative budgeting tool and a means to avoid debt. Layaway offerings vary from books to jewelry and from concert tickets to layaway vacations.

There has been some controversy if bringing back the old way of shopping will be good for the consumer. Zee Boyadjian, a well-known gemologist and jewelry investment strategist to the stars, weighs in.

"It’s perfect timing this year as layaway has retailers 'lay' the item 'away' until payment is complete," Boyadjian says. "If the customer cannot complete the payments, then the item is returned back to the floor. The customer is then refunded the money, minus a fee."

The ability to make large purchases without using credit cards or loans is "a huge plus," Boyadjian says. "The consumer will be paying less in layaway fees than interest on their credit cards."

Boyadjian's Top 5 Tips for Black Friday and Layaway:

1. Layaway will help you stick to a budget. You're only going to pay for the cost of the item with a small service fee and a small percentage due as down payment for the total purchase price.

2. Check the websites before you expect to layaway items on Black Friday. Some large stores are not offering it on this day and only offering certain big-ticket items like jewelry and electronics. 

3. Envision what you want to spend.

4. Know what you like and want to buy.

5. Comparison shop via the internet before going to the stores.