What should I know about buying on credit?

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Buying on credit has become so commonplace today that we often take it for granted without fully understanding the legal consequences. You should never accept the invitation to "buy now and pay later" without being fully informed of what is involved.

For one thing, you will pay more money since interest charges and other costs are added to the cash price of the merchandise. Usually, you will be asked to sign a contract of sale, known in legal terms as a security agreement. Among other things, a security agreement will set forth when and how the seller or finance company can repossess the merchandise, should you fail to make the payments.