Consumer Credit and Advertising Flashcards

What is consumer credit?

Buying goods now and paying later, often in small regular payments.

What was hire purchase (HP)?

You paid a small deposit. You then paid monthly instalments until you owned the item. If you missed payments, the seller could take it back.

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Which popular goods were often bought on credit in 1920s America?

Cars, radios, fridges, vacuum cleaners, and furniture.

How common was credit buying for cars and radios by 1929?

About 60% of cars and around 80% of radios were bought on credit.

How did consumer credit help the 1920s consumer boom?

It let more people afford new goods, raised demand, and kept factories busy.

What was GMAC and why was it important?

It was the General Motors Acceptance Corporation. It began in 1919 to lend for car purchases and made buying on instalments easy.

What was the main aim of 1920s advertising?

To persuade people to buy more goods by linking products to modern life, comfort, and status.

What methods did advertisers use in the 1920s?

Bold images and slogans, celebrity endorsements, adverts in magazines and newspapers, radio spots, cinema adverts, and roadside billboards.

How did adverts target women in the 1920s?

They promised easier housework and used messages about cleanliness, beauty, and being a modern homemaker.

How did advertising encourage buying on credit?

It showed low monthly payments like “only $5 a month,” making goods seem affordable right away.

What was a risk of easy credit for families?

Debt could build up. If wages fell or jobs were lost, goods could be taken back and bills left unpaid.

What was “keeping up with the Joneses” and how did adverts use it?

It meant matching your neighbours’ lifestyle. Adverts used it to push people to buy the latest goods.

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