FREE ESSAY ON CONSUMER CREDIT

CONSUMER CREDIT

The reasons Americans buy on credit varies, but without it most of us would probably never
be able to purchase necessities such as a home or automobile. The nation's economy
depends on credit, the promise to pay later for goods and services used today; but along
with consumer credit comes consumer debt. With the rise in telemarketing and
commercializing in America it is no wonder why Americans feel the impulse to buy now, pay
later. The most common form of consumer dept is installment debt, which is when a
consumer borrows the money to purchase an item and agrees to repay the loan in equal
installments over a fixed period of time. Without installment debt most consumers could
not afford to purchase items such as a home. Mortgages, a debt owed on real property, are
the latest form of installment debt. Other forms are automobile loans and credit card
purchases. One of the most common types of credit problems is not realizing the extent of
the consumer debt. Denial may play a partial role in this problem, but the lack of
education seems to be one of the largest reasons for consumer debt. Knowledge and
understanding is the key to stopping financial ignorance. Although consumers are not
forced to buy, most feel compelled to purchase goods and serviced because they need them
and do not want to wait.