Baltimore, Maryland (PressExposure) December 23, 2011 -- Executives at ClearOne Advantage, a Maryland-based debt resolution company, are encouraging holiday shoppers to avoid additional credit card debt and instead to use cash or sign up for layaway payment options available at large stores such as Walmart, Kmart, Sears, Best Buy, and other furniture and department stores.
While many credit card companies offer incentives for purchases, these offers rarely result in significant savings for consumers. Instead, ClearOne Advantage executives are urging consumers who cannot afford to pay cash for last-minute holiday purchases, to choose layaway over charging purchases to their credit cards.
"It's easy to overspend spend on loved ones this time of year, sometimes despite financial realities," said ClearOne Advantage Executive Vice President John Repetti. He emphasized that paying cash for holiday spending can not only help consumers spend less overall, but will let shoppers start the New Year with less credit card debt.
However, he acknowledged that many shoppers simply don't have the upfront cash, which is why layaway payment plans are available. Layaway lets consumers spread payments over a series of weeks or months. Shoppers can lock in holiday sale prices, avoid additional credit card debt, avoid interest payments, and spend within their means on major holiday gifts.
"Most of the big stores let shoppers pay for major purchases over several weeks, which not only helps them avoid charging purchases, but also provides an opportunity to start the New Year with a monthly budget in place," explained Repetti. "Plus consumers can avoid the inevitable interest payments that accompany charging holiday purchases."
In addition to Kmart and Walmart, other large retail stores that offer layaway include Marshalls, T.J. Maxx, Burlington Coat Factory, Sears, Best Buy, and Toy "R" Us. As with all financial agreements, shoppers should understand the payment terms before signing up.
"It is easy to rack up debt-especially when more and more consumers are forced to depend on credit to meet monthly expenses," said Repetti. "Exploring layaway options may help some people at precisely the time of year many tend to overspend."