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

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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.

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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.

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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.

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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.

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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

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Chapter 6 Solutions