In addition to Debbie's suggestions, you might also try shortening the stitch length and then setting a slight zig-zag stitch. This will make the stitches closer together but the zig-zag gives some flex for stretch.
Here is a link for a free manual for the machine, it should have the information you need in it,, always use a scrap piece of fabric your sewing to adjust the tension, when adjusting the top thread tension do it one number or letter at a time and then sew on the scrap fabric, until you get the desired stitch you want.
http://www.singerco.com/uploads/download/617_7258-instruction-manual.pdf
Needle types
There are three main types of needles that are used for the majority of sewing, as well as many specialty needles.
Universal needles have a slightly rounded tip, and this general purpose needle should be used on wovens as well as some sturdy knits.
Jersey needles have a medium ballpoint tip designed especially for knit fabrics because it slips between the knit fibers and does not break or damage them while sewing.
Stretch needles, often confused with Jersey needles, are also a medium ballpoint tip, but these have a special eye and scarf that are designed for extremely stretchy fabrics and elastic. Swimwear is an ideal application for this type of needle.
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