The siren cries of nothing down, easy credit and pay later have made the installment plan an essential part of the U.S. economy. In the process, consumers have run up a steadily rising personal debt of $54 billion, much of it in unpaid interest. Economists do not find the figure unduly alarming, but many of them worry that too few consumers realize the true cost of credit.
Last week in Washington U.S. Senator Paul Douglas of Illinois, an economist himself, opened hearings on his "truth in lending" bill. Democrat Douglas argues that banks often advertise a 6% annual rate...
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