"Buying on Time."

During the 1950s "buying on time" — paying for a large purchase in monthly installments — became acceptable as a regular practice, not just in time of need. Americans used credit to purchase new cars, electronic equipment, household goods, and appliances at a record pace. (Of course, age generally determined whether you were a borrower or a saver: people forty years old or older saved far more and borrowed less than younger people.) During the 1920s, the last time consumers had any real purchasing power, banks were reluctant to grant personal loans for consumer spending. But the late 1940s saw a sharp increase in the number of new families, many of whom were furnishing their new households. Banks recognized a large pool of potential loan customers and encouraged consumers to finance their auto purchases. By 1956 nearly 20 percent of...