Q:

What was the installment plan of the 1920s?

A:

Quick Answer

The installment plan of the 1920s, an arrangement that allowed people to buy what they wanted with a small down payment and pay off the rest in monthly installments, provided Americans a way to own what they did not have the money to buy. This system first became popular in this decade of overindulgence just prior to the Great Depression.

Continue Reading

Full Answer

Manufacturing of goods was on the upswing in these years. All kinds of new machinery and appliances sparked the interest of the consumer, from cars to radios and from washing machines to dishwashers, and many Americans wanted them all. Most, however, were unable to afford everything they wanted, so the installment plan became a popular solution. All the buyer had to do was put down some money and pay monthly payments until the financial obligation was met.

The plan seemed to be a win-win situation for all. Manufacturers kept producing, stores kept selling and people got to live better than they ever imagined. No longer did the majority of people pay cash for all they bought. Credit became popular, and consumer debt rose more than 100 percent during the decade of the 1920s. By the end of the decade, more than 50 percent of cars were purchased on credit. When the stock market crashed in 1929, many consumers were drowning in debt.

Learn more about US History

Related Questions

  • Q:

    What is Sears' layaway payment plan?

    A:

    The layaway payment plan at Sears entails a customer making a down payment on items and paying in installments every two weeks, as of 2015. When she pays off an item, she retrieves it at the store or arranges for pickup or delivery if it is at a warehouse.

    Full Answer >
    Filed Under:
  • Q:

    Does the IRS offer installment payment agreement options?

    A:

    A taxpayer who is unable to pay his tax bill immediately can request that the IRS set up a monthly payment plan through which the amount due is paid in installments, according to the IRS. These plans are generally approved, but there are fees and interest added.

    Full Answer >
    Filed Under:
  • Q:

    How can you arrange an installment tax payment plan with the IRS?

    A:

    According to the IRS, taxpayers and their authorized representatives can arrange for an installment tax payment plan by sending in an application. As of 2014, the fee for an installment agreement is $120 for the regular agreement, $52 for a direct debit agreement and $42 for taxpayers who meet certain financial guidelines.

    Full Answer >
    Filed Under:
  • Q:

    What is a Fresh Start program?

    A:

    The IRS Fresh Start program increases the amount of money taxpayers can owe before the IRS files a lien on them, and it provides a monthly installment plan that helps taxpayers settle the debt for less than the amount owed. Its purpose is to make it easier for individuals to qualify for alternative payment programs and to provide an incentive to settle past-due claims.

    Full Answer >
    Filed Under:

Explore