Always when making a direct credit to the consumption or financing, we must look for to observe what is the initial price of the product that we are going to acquire and take care of calculating the final price. Why do that? Simple, depending on the interest that will be paid on the financing, a product with lower initial price, in the end can get much more expensive, and vice versa. So taking care is the least.
What is a “Consumer or Consumer Credit”
Consumer credit is a form of debt that a person gets when buying a good or service. Credit includes purchases made with credit cards, bank credit lines, some loans and financing. Consumer credit is also known as consumer debt. The modality is divided into two classifications: revolving credit and term credit. The most common form of consumer credit is a credit card.
Consumer credit is used by a large number of consumers who use this type of credit to buy services or goods that depreciate rapidly. This includes automobiles, education costs, touring vehicles, boat and trailer loans, but does not include debt obtained to finance investment property or real estate.
For example, a mortgage loan is not consumer credit. However, the 65-inch high-definition television paid with an unlimited credit card is a consumer credit.
Consumer credit allows consumers to obtain a cash advance or loan to spend on products or services for family, household or personal use repaid at a specified future date. Retailers, department stores, banks and other financial institutions offer consumer credit as a form of payment for their products and services.
Care of offers and promotions with consumer credit
But there is a problem with this, it has become increasingly common for some retail stores and also for large magazines to make bogus offers, run ads that are selling products in 3x, 6x, 10x, 12x, and even 18 interest-free payments, but in fact , interest rates and interest rates are already included in the installments of the cash value.
By law, the commercial establishment is required to state what fees and the amount of interest to the consumer . Another common practice, and possibly still occurring on those days, is when the salesperson or clerk uses a ready-made table provided by the bank or financier, which reports a lower rate when in fact another fee is being charged, a fact completed by surveys done by Idec.
This type of manipulation is considered by the Consumer Defense Code (CDC) as misleading advertising. If you do not want to have problems, it is best to prevent yourself and make the interest calculations from the table that Procon provides for free. Want to make a good purchase and pay the fair? Spend a little more of your time comparing and researching for fees and interest charged at different stores.
Tips on consumer credit
Tip, in the months of January and February, generally the stores of the trade as a whole, offer discounts and make sensational promotions, and consumer credit becomes cheaper. If possible, postpone your purchases for this time of year, if it is not so urgent.
Never be lazy or ashamed to ask for discounts, haggle whenever you can and prefer to shop in sight. Now if it is essential to have to do a financing , research, compare, and look for stores with the best interest rates, combining the smallest number of parcels.
Remember: the higher the number of installments, the higher the interest, and consequently the final value of the product will certainly be higher.
There is! one more thing, a lot of caution with new promotional launches. It is very likely that the differences related to the old product is not so relevant, generally have the same efficiency and technology, but are aesthetically modified, the famous makeup to make them more expensive.