Evening star., 1942-05-27
Refinancing Will Keep
Store Accounts From
Default on July 10
Retail Credit Official
Says Many Are Paying
Bills on Monthly Plan

Facing July 10 deadline, when
the new Federal Reserve System
restrictions on consumer credit be-
gin throwing overdue charge ac-
counts into default, many consumers
are taking advantage Of the oppor-
tanity offered Of refinancing their
current bills into an installment
account to be paid over six months.
Such a step would keep their credit
accounts alive.
This was disclosed today by John
K. Althaus. secretary Of
the Associated Retail Credit Men
Of Washington, who explained how
the new credit regulations operate.
The change of Importance to all
who have 30-day charge accounts" !"
he said. "is that these accounts must
be paid In full by the 10th of the
second month after purchases were
made. That means that what you
bought in May and before must be
paid in full by not later than July
10. If the account is permitted to
90 unpaid beyond that day no fur
ther charges may be added until
the condition is remedied."
Two Ways to Proceed.
There are two ways, at least, to
remedy the condition of an account
going into default, he explained.
One Is to pay off the bill at once,
and have the credit resumed. The
other is to transfer the bill to an
mstallment account and settle it in
weekly or monthly payments over.
xx-month period. Credit then also
will be resumed But even then"
he said. "the Federal Reserve regu-
Ations say monthly payments can
be no less than S."
'These regulations are going to be
hardest" he explained, "on the per-
son who has bought what was need
ed and then made monthly pay
ments of whatever amount was con-
yenient, sometimes $40, sometimes
$50. These people, many of whom
have excellent accounts, will with a
little planning still be able to say
charge it,"
Under the installment or budget
plan, Mr.. Althaus explains, there
are Federal Reserve regulations, too.
The six months plan is designed to
help persons who wish to extend
their current bills in the beginning
n the period of the new regulations.
Substantial Down PAYMENTS.
There is also a 12-month plan.
Heavy goods like furniture and
pianos are included in such ar
angements for payment within IL
months" Mr. Althaus explained.
Clothing and other soft goods
usually are financed on budget plans
Of three or four months. Budget
accounts must have a substantial
down payment.
There Is now great deal of in
terest In our bill-paying habits" he
said, but what the stores are wor-
fied about Is that too many of us
may wait until the last minute and
then flnd the credit departments
unable to cope with the many GUS
nmers coming to see them. There
fore 1t Is our advice that you
mould see your favorite credit man
1t the earliest opportunity.
The Federal Reserve regulations
simply mean that the war effort
includes teaching us to be thrifty
and to pay our bills promptly. Some
Of US have an idea that If we learn
Ach good habits now we may never
again make the retail store wait as
ong as they did in the past for
bayment Of our accounts"
Among the principal articles
which are not included in the list
mder control of the Federal Re-
,erve regulations are: Groceries.
dairy products, coal, fuel, oil, gas,
aooks, laundry, dry cleaning, beauty
oarlor products and cosmetics.