Are you looking to get a jump on holiday shopping, but do not have all of the funds to pay for your purchases? 

Even though more stores and online merchants are offering layaway, you might want to think twice before using these programs. 

They could be costly, especially if you change your mind or cannot make the payments.  

When you buy something on layaway, you typically pay an upfront service charge and deposit, and then make regular payments on a weekly or bi-weekly basis. 

Although layaway can be a good option if you lack credit or are short on cash when an item goes on sale or is in short supply,  it can have some drawbacks. 

If you miss a payment, change your mind, or fail to pick up the merchandise in a timely manner, you could be subject to a cancellation fee that could be as much as $10 to $25. 

However, if you know that you can stick with the plan and want to go this route, make sure to

• Get the terms and conditions in writing.
• Compare the cost to buy on layaway verses using another option, and
• Make sure to make payments on time. 

Failure to do so could not only mean that your merchandise is returned to the sales floor, but you could also be hit with a hefty cancellation fee.

For more information about layaway programs and policies, contact the Federal Trade Commission.