MAJOR PURCHASES:
FINANCING A MAJOR PURCHASE:
PAYMENT BY CASH
PAYMENT BY CREDIT
- The major purchases that people associate with independent living are a house, car, furniture and electrical items such as a refrigerator, washing machine and television.
FINANCING A MAJOR PURCHASE:
- There are two ways of purchasing goods and services: using cash or credit.
PAYMENT BY CASH
PAYMENT BY CREDIT
- The advantages of using cash are that you instantly receive the good, avoid debt and can possibly negotiate a discount. However, it has disadvantages such as having to wait until you have saved sufficient funds to purchase the good and the inconvenience of carrying large sums of money.
- There are three ways of paying w/ cash:
- Notes & coins
- Debit card
- By cheque
- Notes & coins
- When you buy goods and pay for them later, it is known as credit. There are four methods of buying goods on credit. They are:
- Credit sales contract
- Loan contract
- Continuing credit contract
- Lay-by
- Credit sales contract