The rest of the stuff they needed they managed to find lying around at their parents’ places. When Amy was shopping around for her fridge, she found that she was going to have to spend around $1000 to get a decent one. She didn’t have that much money in the bank, and they weren’t moving in for at least four weeks, so she decided to put it on lay-by.
The retailer can also cancel the lay-by agreement if you don’t stick to the agreement to make payments on time. When I was speaking to various people about this issue, they warned me never to enter into a lay-by agreement for unseen goods that are being made or that are on order.
• The purchase price and the initial deposit that was paid.
• The dates on which the other payments are due.
• The outstanding balance (the amount that you have left to pay before you can take the product home).
• Any cancellation charges that might apply.
But don’t need to take it home with you right then and there, you can ask the sales- person if you can put it on lay-by. You enter into a lay-by agreement with the store by placing an initial deposit on the item, which acts as your first payment. There is no set amount that should be put down, but the Australian Retailers Association recommends up to 20 per cent of the price.
A lay-by is basically an interest-free alternative to using credit, where you buy something and pay it off over several installments. Unlike a pair of jeans that you can buy on your credit card, when you put something on lay-by you can’t take it home straightaway. In fact, you can’t take it home until you have paid the whole thing off.