MCS 2100 Chapter Notes - Chapter 5: Medical Emergency, Advantageous, Frequent-Flyer Program

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: Ken Mark

Document Summary

Uses and misuses of credit: valid reasons for using credit, medical emergency, requiring car to get to work, higher education, buy an item now for less money than it will cost in the future. Did you know: the canadian household debt to disposable income ratio reached the highest on record for q3 2010 at. 148. 1 percent, which is a 6. 7 percent increase over the previous year: this level even tops the u. s. percent ratio. Disadvantages of credit: greatest disadvantage is the temptation to overspend, especially during periods of inflation, failure to repay a loan may result in loss of income, valuable property and good reputation. It can cost more due to monthly finance charges and the compounding effect of interest on interest. Consumer loans: used for specific purposes and involves a specified amount. If the loan is secured, the lender will have a legal claim against the security pledged until the loan has been completely paid off.