Layaway makes a comeback for the holidays

Low on cash this holiday season? Layaway, a way to purchase an item without shelling out the entire cost at once, is back in style.

Americans are still struggling with last year's Christmas credit card debt... a whopping 13.5 million consumers according to a recent holiday poll by ConsumerReports.org. Combating that debt is making layaway look pretty attractive this year.

So what is layaway and how does it work?

When you bring your item to the layaway department, you put a deposit down on the item, and a service fee to the department for holding your item for you. The good news? Layaway isn't a credit card... so there are no interest payments. You get to keep the item once it is fully paid for. With layaway, you usually put down an initial deposit between 10 and 20 percent. And you usually have between 30 and 90 days to fully purchase the item.

Let's say the item you put on layaway goes on sale shortly after. ConsumerReports.org reports that Kmart won’t make any price adjustment after seven days from the date put an item on layaway, however Sears will give customers 30 days. And before you leave, get a copy of the layaway contract in writing, just so you and the salesperson are on the same page.

Want to know more about layaway? Check out a video from the Atlanta Bargain Hunter here