KNOXVILLE, Tenn. (WVLT) -- Christmas may seem far away, but the layaway plans are now open. It's an old concept, but a payment system retailers hope will help you afford more.

Layaway lets you put aside everything on your wish list and pay for it on a schedule.

Some retailers are moving back to this payment option to encourage you to buy, in this down economy. So, what do you need to know?

Jerry Tipton, President and CEO of the Better Business Bureau in Knoxville, said, "You want to find out things like, how long can you have it in layaway, if you change your mind midstream, is there a refund is it only store credit."

The BBB gives advice on the layaway process, because Tipton tells us concerned calls start coming in every holiday shopping season.

Tipton said, "Also make sure that if you pick out an item, that it's put in storage then, so that they can't resell it to someone else."

Several major retailers offer layaway, including Walmart, Sears, Toys "R" Us, and Kmart.

Cheryl Patton is the manager of the Kmart on Broadway Street and she said, "Layaway is real popular, we actually do it year round. We do have a very good layaway department."

Patton said there are certain rules to avoid losing money. "The majority of our customers want to avoid credit cards, and layaway is a great option," she said.

So let's compare your cost on $200.

With layaway, you have a $5 dollar service fee at Kmart. If you use a credit card and you pay it off on time, your total is just the $200.

But, if you don't make the payments on time, you add a $15 cancellation fee to your layaway, and you're now out a total of $20. If you don't pay your credit card on time, with 15-percent rate, you're adding an extra $30 to your cost.

"You just have to make payments on a regular basis," said Patton.

And each store's layaway policy is different, (see below for details) from down payments to service fees, and cancellation charges.

Tipton said, "Just know what you're doing and read it before you sign anything."

That way, there won't be any costly holiday surprises You can always avoid all fees and interest while shopping, if you pay for everything in cash.

LAYAWAY PLAN BREAKDOWNS -

Walmart - $5 service fee, 10% down, $10 cancellation fee

Kmart - (8-week plan) $5 service fee, $20 or 10% (whichever is greater), $15 cancellation fee

Toys "R" Us - $5 service fee, 20% down, $10 cancellation fee

Sears - (8-week plan) $5 service fee, $20 or 20% (whichever is greater), 15 cancellation fee

The BBB recommends you ask these questions:

• How much time do I have to pay off the item?

• When are the payments due?

• How much do I have to put down?

• Are there any storage or service plan fees?

• What happens if I miss a payment? Are there penalties? Does the item return to inventory?

• Can I get a refund or store credit if I no longer want the item after making a few payments?

• What happens if the item goes on sale after I've put it on layaway?

• Does the retailer or third-party layaway service have a good BBB rating?

For more advice on how to be a savvy consumer this holiday season, visit www.bbb.org/us/bbb-news.