1Different Types of Alternative Payment Methods

Some of the payment alternatives you can take advantage of include interest-free financing, bill-me-later, and layaway. Such alternatives have risen to prominence as more and more people find it increasingly important to make use of budgets and to steer away from the high interest rates that come with using credit cards. It is rather reassuring that such payment options exist but before you make use of the same it is wise to know what each of them entails.

2About the Layaway Option for Shopping

In layman’s terms, layaway payments are such that you put down some money on items you need in a store and the store then puts these in storage thus allowing you to pay the remaining amounts over a length of time. The items become yours when you’ve made all the payments. In most cases layaway does not attract any interest but some stores will require you to make a nominal payment, say five dollars, for the service. This payment option was first used during the Great Depression to help people who couldn’t afford immediate purchases due to lack of cash.

3Tips for Using the Layaway Option

Having identified a store that offers layaway payments:

• Obtain a copy of the payment policies and keep it together with your receipt.
• Read and understand the terms and conditions including the maximum time allowed between payments, payments scheduling, issues about late fees, issues about exchanges and refunds, sale price markdowns, and policies about items that have been damaged or lost while in layaway room storage.
• Identify what you can realistically afford to pay for before you get started.
• Keep all records of payments made just in case disputes arise later on.
• When you need to make a payment resist any urges to shop on impulse – walk straight to the layaway counter, pay up and walk out.

4Stores that Offer the Layaway Option

It is necessary to identify a credible and reputable store in which you can make purchases by layaway. This method means that a store will be in possession of your money and merchandise until you pay up everything – it’ll be quite unfortunate to deal with a rogue store that can suddenly close shop thus leaving you at a double loss. Some of the stores where you can access layaway payments include Toys R Us, Kmart, Sears, Foot Locker, Burlington Coat Factory, Men’s Warehouse, Marshalls and TJ Maxx.

5About the Bill-Me-Later Method

This is a safe method of payment that can be used to make purchases either on websites or via phone. Making payments for your purchases through websites offering the bill-me-later service can see you enjoy interest-free financing, and promotional offers and discounts from a good number of brand name merchants. Put simply, bill-me-later is akin to a credit card account whereby you can make purchases and then pay for these either in full or in a series of payments until the full amount is realized. In the place of the conventional line of credit it is your credit qualifications that determine the approval of your transactions. Purchases can only be made via phone or online and this is only possible after your account information is confirmed. The same security features on PayPal or credit cards, e.g., zero fraud liability protection, are offered for bill-me-later.

6Why is Bill-Me-Later Good For You?

With the bill-me-later payment option you can enjoy promotional offers and discounted prices that could be out of your reach otherwise. You can also enjoy interest-free financing from various merchants whereby it can be possible for you not to make payments for up to six months and not be charged any interest. There isn’t much hassle in opening a bill-me-later account; it costs nothing to do so and additionally there are no monthly or annual fees required to maintain the account. To make payments you have the choice of using money order, mail, checks and even a checking and/or savings account. It is however not advisable to carry balances on your account as these attract interest – the current rate is 19.99% which is rather too steep for comfort.

7Brand Name Merchant Websites that Offer Bill-Me-Later

Some of the websites that have the bill-me-later payment option include: NASCAR.com, Toys R Us, NFLShop.com, hotels.com, Wal-Mart, PETCO.com, Overstock.com, Sports Authority, Apple Store, and many more. From these you can enjoy regular discounted prices, promotional offers and free shipping.

8About Interest-Free Financing

Through interest-free financing it becomes possible to borrow money freely and invest it with an expectation of making a greater gain. Before you take up this option it is wise to understand some helpful considerations as follows:

• Resist the urge to borrow more than you can pay for in cash – Interest-free financing can turn into a disaster when irresponsibly used to spend with reckless abandon. To avoid a possible financial black hole you should restrict yourself to just spending on what you can afford to settle in cash. It is very advisable to have a good amount of savings somewhere before you use such funding.
• Be informed and organized – You should be clear about all the details of your interest-free borrowing arrangement including the duration you have before interest rates start applying, and whether or not interest will be charged on the entire amount of purchase following the end of the promotional period, etc.
• Prior to borrowing the amount you require think carefully about how best you can invest it and how much you can earn within the timeframe you have.

9Is Interest-Free Financing Really Feasible?

The fact of the matter is that many people rush into interest-free purchase arrangements without thinking too clearly if they can manage to settle their dues in time. Approximately 80% of people end up not doing so and are thus forced to start paying uncomfortable interest rates. It is especially inconvenient if your program entails backdating the interest to the interest-free period and charges it as a lump sum with the rate possibly going as high as 38%. Most programs are also very strict about late payments even when you are just one day off the mark. Unless you are very knowledgeable about how you can take advantage of these programs fully, it is probably wise to save enough money to make once-off payments if you can – you can easily haggle your way to a healthy discounted price this way.