Show BABS 0 S AUTHENTIC STATE STATEMENT special to THE press EXPRESS W bass BABSON DISCUSSES PITFALLS or OF BUYING ON CREDIT DABSON BABSON PARK MASS I 1 hear that some of the college professors who are advising president kennedy on means of increasing employment favor expanding consumer installment buying arold extent of ili the credit business credit cornea comes in two forms 1 I 1 when your wife goes to her favorite store and has her purchases charged 0 the tore store looks up her record through the municipal credit bureau if she has no black marks marki against her the goods are given her or sent to her home when the monthly bills Is sent for these goods the store expects a payment in a short time thirty days later as a maximum the stores really like to encourage such charge accounts as 83 your wife Is likely to buy more it if she can charge the goods rather than pay cash the other form of credit purchase is where the buyer gives a note or several notes payable on specified dates with power of repossession of the goods on a certain date after reasonable notice in case a note is not paid I 1 do not object per se to such installment buying especially on refrigerators television sets washing machines clothes driem and other household appliances which can be re possessed in good condition 1 I however earnestly urge that you read the light fine print ork on the agreement and really understand what you are asked to sign houses automobiles and furniture As I 1 read the advertisements today on new homes for sale ale I 1 am astounded at the way they can be bought by veterans without any down payment or can be bought by anyone at very small down payments and a long mortgage of thirty or more years this Is very different from when I 1 was a young man getting mar ried then we were compelled to pay one third in cash and the mortgage would be written for only five years when talking to students of babson institute I 1 call to their attention the economics of birds which build their houses before they are married and raise any little birds to yo young un g peo people ole buying furniture on the installment plan I 1 am not prepared now to give definite advice the ne laws law of different states vary as to the rights of rePos repossession seg if you are behind in the payments on a house it is a long legal process for the mortgagee to get you out of the house especially I 1 it if you are willing to pay a reasonable rent it if you are behind in your payments for a television set br some other luxury item and default on these payments you must be prepared to let the store take it back before you damage it this also applies to bertz certain household utilities mentioned above when it comes to buying furniture on installment a young couple should certainly consider each item purchased one installment note and agreement should cover the bedroom furniture another note and agreement should cover the living room furniture and a third note and agreement could cover the dining room set all incidentals should be paid for in cash furthermore the three sets of furniture should not be bought at the same time but in the order above out lined say at least a month apart even if you are obliged to camp out tor for a few weeks As I 1 look back to my early married days we got considerable pleasure out of gradually furnishing our little house surely more pleasure comes in striving than in arriving statistics which should be B road rad let me close this column by giving some statistics for bankers merchants and parents to read these figures are based upon a survey by the university of michigan the survey showed that 68 of american households are in debt in one form or another 48 of the families are saddled with periodic installment debt repayments 31 owe mortgage debts 2 owe on non installment debt according to the study 14 of the families owing installment debt are in hock for over 1000 double the proportion only five years ago the survey had one encouraging cou raging note namely that abou tone third of the families owing installment debt report that they have enough savings to offset their debt for those who rationalize that installment buying keeps their savings in tact I 1 would like to point out that statistics show this la is a very costly practice |