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Retailers of all sizes have brought back layaway, that quaint method of shopping that lasted from the Depression era 1930s through the 1980s, then faded. It involves buying items “on time,” paying them off in small increments and leaving them at the store until you have paid in full.

It seems to be the perfect way to shop in a recession. After all, it helps people avoid the holiday credit card trap. As a bonus, if you are shopping for children, you don’t have to find a hiding place for their presents at home. The store, in effect, hides presents for you.

And it’s good for retailers.

Last year, Kmart said its better-than-expected December sales were due to the 600,000 layaway accounts started in its stores nationwide.

Toys ‘R’ Us, which announced its new layaway program in October, on Wednesday said it will expand it to include “big gift” items such as video game hardware. Consumers had asked for the expansion, the company said in a news release.

Other big retailers such as Sears, T.J. Maxx, Marshalls and Burlington Coat Factory continue to offer layaway options. And many smaller independent stores have devised their own programs, realizing they have to be creative in a tough economy.

So layaway is good for everyone, right?

Actually, for consumers it’s only as good as the individual store’s layaway program and policies.

To make sure you aren’t in for any nasty surprises, the Federal Trade Commission recommends asking several questions before agreeing to a layaway plan. Make sure to get the merchant’s policy in writing, and pay attention to:

n Terms of the layaway plan: How much time do you have to pay for the merchandise or service? When are your payments due, what is the minimum payment required, and are there charges for using the plan, such as a service fee? Find out if there is a fee or penalty for missed or late payments. Will your contract be canceled? Will the merchandise be returned to inventory?

n Refund policy: If you decide you don’t want the merchandise after you’ve made some or all the payments, can you get a refund? Retailers’ policies differ. Some will give you all your money back, others charge a non-refundable service fee and others offer a merchant credit for the amount you paid.

Layaway purchase plans are not limited to brick-and-mortar retail outlets, the FTC says. Some online merchants use them, as well.

Some layaway sites operate like a combination shopping-search engine and store. The companies have hundreds of merchants and online retailers selling name brand items. Consumers select products and set up a payment plan, with some sites requiring electronic debiting from your checking account.

Others require that you pay by check or money order through postal mail. Still others allow you to pay with credit or debit cards or use online-payment services. Once you’ve paid the full balance, the online layaway service pays the merchant, and the merchant sends you the product.

Needless to say, this kind of arrangement is complex and a glitch in any part of the process can result in disappointments on holidays. So be cautious. Check out any company thoroughly with its state and county consumer authorities, and with the Better Business Bureau. If it doesn’t have a strong, positive track record, shop elsewhere.

Keep good records of the payments you make on layaway merchandise. They may come in handy if you have a problem with the seller.

As with credit card shopping, consumers can buy too much using layaway, too. So before going shopping, it’s best to create a budget for how much you can afford to spend and stick with it.

For contact information on consumer authorities in all 50 states and their counties, visit: www.consumeraction.gov

For more consumer tips on layaway, visit:

www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt173.shtm

Consumer Action will respond to each properly submitted letter about a problem or question, either in this column or by letter or phone. Letters must include copies — not originals — of all relevant documentation and a name, address and phone number at which you can be reached. Send letters to: Consumer Action, The Press, 11 Devins Lane, Pleasantville, NJ 08232.

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