With the holidays just around the corner, many people are turning to layaway to buy gifts for their loved ones.

Many shoppers are on a budget for Christmas gifts this year and they're searching for ways to shower their loved ones with gifts without breaking the bank.

If you turn to a layaway plan this year, the Better Business Bureau (BBB) has some advice on how best do use it in lieu of a credit card.

Buying items on layaway is a way for you to make down payments on the item. Typically a buyer will make a down payment of 10 to 20 percent and pay service or plan fees for the store to hold the item for them. You then has between 30 to 90 days to make periodic payments to pay off the balance. Once it is paid off, the customer can take the items home.

"Layaway services can be a great alternative to the using a credit card," said David Polino, Better Business Bureau President. "However, it's extremely important that customers take the time to make sure the service being provided fits all of their needs and they know what fees to expect."

Some stores also provide online layaway services for items through the retailer's website. Also, third-party businesses like elayaway.com or lay-away.com have popped up to set up layaway plans online between customers and retailers that don't already have a layaway program. Customers make periodic payments to the third-party layaway service provider. Once the item is fully paid for, the business then buys the item from the retailer and ships it to the customer.

The BBB says you should ask these questions before considering layaway:

- How much time do I have to pay off the item?
- How much do I have to put down?
- Are there any storage or service plan fees?
- When are the payments due?
- 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?
- What if I don't want the item after I 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, click here.