Consumer Credit, under capitalism, a special form of credit granted by the capitalists to the people for purchasing articles of personal consumption or paying for everyday services. In the capitalist countries consumer credit is provided by commercial establishments as deferred payment, as well as by banks and other financial institutions. It may be short- or medium-term, and primarily embraces consumer durables, such as cars, refrigerators, TV sets, etc. The growing number of commodities sold on the instalment plan is explained by the fact that the working people’s effective demand lags behind development of capitalist production, which leads to chronic difficulties in selling products. Today more than 20 per cent of commodities are sold on credit terms in the USA, 19 per cent in France, and nearly 16 per cent in the FRG. Credit recipients pay the bank a 14-16 per cent annual rate of interest, and sometimes more. When purchasing goods on the instalment plan, workers pay large amounts for them, since they also have to pay interest for credit. This means that in the USA, for example, goods sold on the instalment basis cost 10-20 per cent more than goods sold for cash. If the buyer fails to pay the instalments, under the terms of the credit contract the bank acquires the right of ownership of the 65 thing sold on credit. The purchasing of goods on credit does not expand effective demand, but only postpones the time of payment. During economic recessions and crises and growing unemployment, credit indebtedness aggravates the hardships of the unemployed. In the socialist countries, consumer credit is of a fundamentally different social nature. Its objective is the fuller satisfaction of the working people’s requirements for durables. Credit is extended by state and cooperative trade organisations. In the USSR, credits are usually granted for the period of six months to two years, with an initial down payment of 20-25 per cent of the price of the item purchased. The interest paid for the use of credit amounts to one to two per cent. It is thus not higher than the interest rate payable by the savings banks on personal deposits. Credit is therefore advantageous to the people. The fact that there is no unemployment and no social obstacles to the expansion of effective demand in the socialist countries guarantees full and timely payments by those granted credits.