The reason behind the usage of consumer credit and lay down the benefits and problems associated with it.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 6, Problem 1LO

Summary Introduction

To determine: The reason behind the usage of consumer credit and lay down the benefits and problems associated with it.

Expert Solution & Answer

Explanation of Solution

The major reasons for which the consumer credit is used by the individuals are as follows:

In order to make the purchases of expensive items without investing the huge amount at the single point of time.
In order to meet the requirements at the time of emergency such as meting living expenses in the time of job loss or for paying the visit in the time of emergency.
To pay the bills of various outlets or to pay the fees of various services from the place of convenience.
Investments policies are purchased by using the funds from the consumer credit by many individuals.

Benefits of using the consumer credit are as follows:

Helps to purchase the expensive items like car, furniture without disturbing the cash budget of the individuals.
Easy availability of funds at the time of emergency.

Problems associated with the usage of consumer credit are as follows:

Higher interest rates to be paid by the borrower on the borrowed amounts.
Overspending the credit amount will become a debt trap which may lead into bankruptcy, poor credit ratings or the lawsuits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

King’s Park, Trinidad is owned and operated by a private company, Windy Sports Ltd. You work as the Facilities Manager of the Park and the CEO of the company has asked you to evaluate whether Windy should embark on the expansion of the facility given there are plans by the Government to host next cricket championship. The project seeks to increase the number of seats by building four new box seating areas for VIPs and an additional 5,000 seats for the general public. Each box seating area is expected to generate $400,000 in incremental annual revenue, while each of the new seats for the general public will generate $2,500 in incremental annual revenue. The incremental expenses associated with the new boxes and seating will amount to 60 percent of the revenues. These expenses include hiring additional personnel to handle concessions, ushering, and security. The new construction will cost $15 million and will be fully depreciated (to a value of zero dollars) on a straight-line basis over…

A brief introduction and overview of the company"s (a) uk vodaphone -300word history and current position in respective marketplace.A graphical illustration, together with a short written summary, of the five year trends in sales, profits,costs and dividends paid-100word

A brief introduction and overview of the company"s (a) uk vodaphone (b) uk Hsbc bank, (c)uk coca-cola history and current position in respective marketplace.

Answer 2

Question

Chapter 6, Problem 1LO

Summary Introduction

To determine: The reason behind the usage of consumer credit and lay down the benefits and problems associated with it.

Expert Solution & Answer

Explanation of Solution

The major reasons for which the consumer credit is used by the individuals are as follows:

In order to make the purchases of expensive items without investing the huge amount at the single point of time.
In order to meet the requirements at the time of emergency such as meting living expenses in the time of job loss or for paying the visit in the time of emergency.
To pay the bills of various outlets or to pay the fees of various services from the place of convenience.
Investments policies are purchased by using the funds from the consumer credit by many individuals.

Benefits of using the consumer credit are as follows:

Helps to purchase the expensive items like car, furniture without disturbing the cash budget of the individuals.
Easy availability of funds at the time of emergency.

Problems associated with the usage of consumer credit are as follows:

Higher interest rates to be paid by the borrower on the borrowed amounts.
Overspending the credit amount will become a debt trap which may lead into bankruptcy, poor credit ratings or the lawsuits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 1LO

Summary Introduction

To determine: The reason behind the usage of consumer credit and lay down the benefits and problems associated with it.

Expert Solution & Answer

Explanation of Solution

The major reasons for which the consumer credit is used by the individuals are as follows:

In order to make the purchases of expensive items without investing the huge amount at the single point of time.
In order to meet the requirements at the time of emergency such as meting living expenses in the time of job loss or for paying the visit in the time of emergency.
To pay the bills of various outlets or to pay the fees of various services from the place of convenience.
Investments policies are purchased by using the funds from the consumer credit by many individuals.

Benefits of using the consumer credit are as follows:

Helps to purchase the expensive items like car, furniture without disturbing the cash budget of the individuals.
Easy availability of funds at the time of emergency.

Problems associated with the usage of consumer credit are as follows:

Higher interest rates to be paid by the borrower on the borrowed amounts.
Overspending the credit amount will become a debt trap which may lead into bankruptcy, poor credit ratings or the lawsuits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1LO

Summary Introduction

To determine: The reason behind the usage of consumer credit and lay down the benefits and problems associated with it.

Expert Solution & Answer

Explanation of Solution

The major reasons for which the consumer credit is used by the individuals are as follows:

In order to make the purchases of expensive items without investing the huge amount at the single point of time.
In order to meet the requirements at the time of emergency such as meting living expenses in the time of job loss or for paying the visit in the time of emergency.
To pay the bills of various outlets or to pay the fees of various services from the place of convenience.
Investments policies are purchased by using the funds from the consumer credit by many individuals.

Benefits of using the consumer credit are as follows:

Helps to purchase the expensive items like car, furniture without disturbing the cash budget of the individuals.
Easy availability of funds at the time of emergency.

Problems associated with the usage of consumer credit are as follows:

Higher interest rates to be paid by the borrower on the borrowed amounts.
Overspending the credit amount will become a debt trap which may lead into bankruptcy, poor credit ratings or the lawsuits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1LO

Summary Introduction

To determine: The reason behind the usage of consumer credit and lay down the benefits and problems associated with it.

Expert Solution & Answer

Explanation of Solution

The major reasons for which the consumer credit is used by the individuals are as follows:

In order to make the purchases of expensive items without investing the huge amount at the single point of time.
In order to meet the requirements at the time of emergency such as meting living expenses in the time of job loss or for paying the visit in the time of emergency.
To pay the bills of various outlets or to pay the fees of various services from the place of convenience.
Investments policies are purchased by using the funds from the consumer credit by many individuals.

Benefits of using the consumer credit are as follows:

Helps to purchase the expensive items like car, furniture without disturbing the cash budget of the individuals.
Easy availability of funds at the time of emergency.

Problems associated with the usage of consumer credit are as follows:

Higher interest rates to be paid by the borrower on the borrowed amounts.
Overspending the credit amount will become a debt trap which may lead into bankruptcy, poor credit ratings or the lawsuits.

Answer 6

Chapter 6, Problem 1LO

Summary Introduction

To determine: The reason behind the usage of consumer credit and lay down the benefits and problems associated with it.

Expert Solution & Answer

Explanation of Solution

The major reasons for which the consumer credit is used by the individuals are as follows:

In order to make the purchases of expensive items without investing the huge amount at the single point of time.
In order to meet the requirements at the time of emergency such as meting living expenses in the time of job loss or for paying the visit in the time of emergency.
To pay the bills of various outlets or to pay the fees of various services from the place of convenience.
Investments policies are purchased by using the funds from the consumer credit by many individuals.

Benefits of using the consumer credit are as follows:

Helps to purchase the expensive items like car, furniture without disturbing the cash budget of the individuals.
Easy availability of funds at the time of emergency.

Problems associated with the usage of consumer credit are as follows:

Higher interest rates to be paid by the borrower on the borrowed amounts.
Overspending the credit amount will become a debt trap which may lead into bankruptcy, poor credit ratings or the lawsuits.

Answer 7

Chapter 6, Problem 1LO

Summary Introduction

To determine: The reason behind the usage of consumer credit and lay down the benefits and problems associated with it.

Answer 8

Expert Solution & Answer

Explanation of Solution

The major reasons for which the consumer credit is used by the individuals are as follows:

In order to make the purchases of expensive items without investing the huge amount at the single point of time.
In order to meet the requirements at the time of emergency such as meting living expenses in the time of job loss or for paying the visit in the time of emergency.
To pay the bills of various outlets or to pay the fees of various services from the place of convenience.
Investments policies are purchased by using the funds from the consumer credit by many individuals.

Benefits of using the consumer credit are as follows:

Helps to purchase the expensive items like car, furniture without disturbing the cash budget of the individuals.
Easy availability of funds at the time of emergency.

Problems associated with the usage of consumer credit are as follows:

Higher interest rates to be paid by the borrower on the borrowed amounts.
Overspending the credit amount will become a debt trap which may lead into bankruptcy, poor credit ratings or the lawsuits.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 6 - Prob. 1LO Ch. 6 - Prob. 2LO Ch. 6 - Prob. 3LO Ch. 6 - Prob. 4LO Ch. 6 - Prob. 5LO Ch. 6 - Prob. 6LO Ch. 6 - Prob. 1FPE Ch. 6 - Prob. 2FPE Ch. 6 - Prob. 3FPE Ch. 6 - Prob. 4FPE

The reason behind the usage of consumer credit and lay down the benefits and problems associated with it.

Concept explainers

To determine: The reason behind the usage of consumer credit and lay down the benefits and problems associated with it.

Explanation of Solution

Want to see more full solutions like this?

Chapter 6 Solutions