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Installment plans were put into major use during the 1920s, but had been used quite successfully in the decades before. They were used quite a lot with goods that had higher prices, such as automobiles, because the average American family normally couldn't afford to buy higher priced items in one payment.
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By the 1920's almost everyone was using installment plans. The installment plan enabled people to buy goods over an extended period of time, without having to put down very much money at the time of purchase.
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Installment plans were credit systems where payment for merchandise/items is made in installments over a pre-approved period of time. In the 1920s, the items people could purchase with an installment plan included: automobiles, automobile parts, household appliances, radios, phonographs, pianos, and furniture.
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