Get 1 week of unlimited access
Class Notes (1,034,172)
US (406,025)
UVM (982)
CDAE (26)
Fritz (24)
Lecture 9

CDAE 158 Lecture Notes - Lecture 9: Major Force, Embedded System, OverdraftPremium

3 pages76 viewsFall 2018

Cmty Dev & Apld Econ
Course Code
CDAE 158

This preview shows half of the first page. to view the full 3 pages of the document.
Introduction to Consumer credit
3 ways consumers can finance purchases
- Draw on savings
- Use present earnings
- Borrow against expected future income
Trade-offs with each alternative
- Depleting savings reduces emergency funds
- Spending current income on luxuries will eventually reduce future well-being
- Spending future income now reduces funds available for future expenses
Uses and misuses of credit. Before major purchase, ask:
- Do i have the cash for the down payment?
- Does the purchase fit my budget
- Can I postpone this purchase?
- Could I use the credit i need in some better way?
- Do I want to use my savings for this purchase?
Consumer credit importance
- A major force in American economy
You're Reading a Preview

Unlock to view full version

Subscribers Only

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.