Evening star. [volume] (Washington, D.C.) 1854-1972, 1961-07-31

homeowners. You need only a
small down payment and a
steady income to buy one.
Thanks to liberal credit terms,
you can pay off your mortgage
like rent.
Credit has put the Nation
on wheels, has made us the
most travelling people on
earth. Most new automobiles
on American roads are sold
on the installment plan.
Credit enables families with
modest incomes to educate
their children in college.
Credit Is like many other
things in lifeline in its place.
But it can be abused. And
when that happens, it can
drag you and your family into
misery.
Accept the fact that credit
is a service you must pay for.
You will then be better able
to decide when this extra cost
will be justified.
When to Use It
I asked dozens Of credit
authorities to list when it is
OK to buy on credit. Their
consensus is:
When you buy something
that will provide . distinct
advantage and will last for
years. Your children might be
grown by the time you could
buy q house for cash. Many
labor-Saving appliances also
fall into this category.
When it Is . necessity, not
. luxury. II a member Of your
family needs urgent medical
care now, it does not make
sense to wait until you can
afford it," If you live In the
suburbs, far from public trans
portation, shops and churches,
an automobile you can rely
upon is probably also q re-
quirement.
When the convenience of
credit Is worth more than it
costs. For example, you may
wish to order from a grocery
store which will deliver, and
bill you later. A store may
have q sale on q certain item
which you need and which will
be difficult to obtain later. BY
buying now-on credit-you
may actually save a great deal
Of time and money.
When it costs no more to
charge It. Most people run a
regular bill with their milk
man. His price would be the
same even If they climbed out
of the bed at dawn each day
to pay him on delivery. Doc
tors and dentists generally say
they charge the same whether
you pay now or later.
When your charge account
helps your tax records. The
extra cost Of certain credit
accounts may be more than
offset by the record-keeping
service received.
When it Is the only way you
can save regularly. Some decide
to leave their savings intact
when they make major pur-
chases and pay in monthly in
stallments. They pay more this
way, but it enables them to
save the amount they would
otherwise have taken from
their accounts.
When to Pause
You should not take on new
installment commitments I'M
less
/. You have q steady job
with good prospects Of wage
increases.
2. You have considered how
the total price tag on the
goods fits into your budget,
not Just the monthly pay
mentS.
3. You don't expect any
other major expense in the
near future. If your wife is
expecting q baby in the next
few months, it's not the time
| to buy a new TV set!
You may be able to take on
additional installment commit
ments if
/. There is more than one
Iwage-earner in the family.
2. You don't hold many per-
sonal debts.
3. You have some personal
fSavingS.
Good Credit Risk?
You may not realize 1t. but
Ia company in your locality
knows more about you than
lyou probably imagine. Quite
likely, it has . complete bio
lgraphy-where you were born,
Jobs you have held, where you
Hive, how much rent you pay
Tor how much your house is
worth. And most important, it
probably knows how you have
used your credit in the past
whether you pay your debts
promptly and in fun.
This company may have a
name like Central Credit Blu
reau" or Central Credit Ex-
change" Few merchants in
t..ese credit conscious days
could operate without it.
Thanks to the local credit
bureau, q merchant need only