• by Sarah Mahoney  @mahoney_sarah, October 21, 2010

With consumers still reluctant to use credit cards, Sears hopes to increase consumer borrowing by rolling out a new payment option, called the Sears Monthly Payment Plan.

The plan will let consumers who are leery of unexpected finance charges make purchases with a fixed, low annual percentage rate, and payments that extend over 48 months.

Sears, which also offers customers layaway options as well as its Sears branded card, says it wanted to offer credit-shy customers more financing options. "The monthly payment plan is a smart shopping solution that makes it more affordable for customers to pay for large purchases," it says in its release. It claims the new plan now gives it more payment options than any other major appliance company.