Easy+Credit

=Easy Credit:= = = ===One of the causes of the great depression was easy credit, which caused people to purchase things that they could not actually afford, causing their debt to increase unknown to them. Easy credit allowed people to purchase items that they could not normally afford. Installment plans allowed them to buy an item with a few dollars as a down payment and then just to make monthly or yearly payments on that item plus interest. This caused people to buy things that they could not actually afford and thus they put themselves into debt without realizing it. When they did realize that they were in serious debt they suddenly stopped buying items which cause the stock market to slow down, which caused fear amongst investors, which caused them to pull their money out of overpriced stocks and thus the market crashed. Because banks and investors did not see the potential consequences of their actions banks gave out loans without thinking, and people bought everything on credit. So when they realized that their credit was meaningless, and that they had no money to pay their debts off with, they lost everything. If credit had not been as easy to attain, people may not have lived so far beyond their means and therefore would not have fallen so far when the stock market crashed.===