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THE DEMAND FOR CONSUMER CREDIT (CDt)

Section I - Introduction
“CHARGE IT.” These two words have been ingrained in the American psyche over the past couple of decades. A recent story on the nightly news reported that the average American household now carries $8,000 in credit card debt. Everywhere one turns, merchants are vying for their business by offering enticing credit schemes – 0% interest for 12 months, buy now, and make no payments until 2003, etc. Even medical providers, such as dentists, plastic surgeons and ophthalmologists are offering cosmetic services payable via a monthly payment plan. Have these schemes become just too attractive for consumers to refuse? Considering that the U.S. Congress is currently debating legislation to make it tougher for consumers to file for bankruptcy protection, the answer may seem quite obvious.
What is consumer credit (CD), and why is it important?
Consumer credit (CDt) is defined as any type of purchases for goods or services in which the consumer makes payment ...

Posted by: Veronica Gardner

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