BIOL 1500 Study Guide - Telephone Directory, Disability Insurance, Effective Interest Rate
2 Sep 2014
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Chapter 6 choosing a source of credit: the costs of credit alternatives. Credit costs money, so you should weigh benefits of buying an item on credit versus waiting until you have saved up enough money to pay using cash. Should avoid credit in two situations: when you do not need or really want a product that requires financing, when you can afford to pay cash (almost always cheaper than using credit some stores offer discount for using cash) Installment loans may carry lower interest rate, they are less expensive credit option for loans repaid over period of many months/years. Since credit cards usually provide float period (certain number of days during which no interest is charged) they represent cheaper way to make credit purchases that are paid off in month or two. Parents or family members often source of least expensive loan (may charge you only the interest they would have earned if they didn"t make the loan)
