INSTALMENT PLAN.

Auckland Star, Volume LXII, Issue 81, 7 April 1931, Page 9

INSTALMENT PLAN.

OPERATION IN AMERICA.

HOME PURCHASERS HARD HIT

SAN FRANCISCO, March 18.

That vast army of instalment plan supporters in America has been tremendously hit by the slump in business and the consequent unemployment. Many Americans are firmly convinced that in order to make a success of life they should be faced with an uphill fight, and as a consequence many a family take* on a frightful battle with the monthly income. Homes are bought at so much a month, -the radio is purchased' on the .same plan, the family motor car is bought on the same principle and so is the furniture for the home. As might be expected, when a crisis arrives and some members of the family are thrown out of work payments are impossible for this terrific load of monthly payments.

There are instances of speculative builders having as many as 50 to 100 houses coming back on their hands after they have tired of permitting their prospective purchasers further delaying paying their monthly instalments. Stories are circulated that business houses are behind with the rent for several months, the owners hoping against hope that times would have improved ere this, and the tenants would have been able to pay up arrears. It should be understood that in' many cases foreclosure on property is only resorted to when there is no other alternative, usually the banks who aid the speculative builder ordering this procedure as a protective measure.