...Abstract The abusive and excessive use of credit cards are a major economical issue in Turkey for a decade, which poses threats to the core structure of our society and the individuals’ self-esteem. News regarding the problems arising due to the inappropriate use of credit cards increases on a daily-basis, which signifies the fact that the problem shows a continually expanding trend, which is worth carrying an investigation upon. In order to overcome this problem, eight solutions were proposed. These solutions were banning the installments in shopping, copying the American model by providing collateral to the banks while getting a new credit card, requesting a guarantor per person while giving a credit card, giving maximum one credit card per person who has already debt, increasing the commission rate of the point on sale machines, educating people about the usage of credit cards and tell them its advantages and disadvantages, preparing therapy meetings by government for shopaholics and limiting cash advance credit from credit cards. The underlying research methodology of these solutions includes student surveys, internet based researching, discussions with credit card users, and discussions with personnel of banks. These proposed solutions were evaluated according to their effectiveness, feasibility, acceptability, sustainability and legality. Among these solutions three of them passed the criteria and suitable to apply. The chosen solutions can be regarded as the most...
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...technology has provided. Gathering of information, news and data has been made easier and wider with the aid of the latest gadgets and instruments that are brought by the latest technology. Technology has touched everything even the process in which the people are obtaining something for payment, the purchasing process. In today’s perspective, purchasing has been an easy way to acquire something because of the innovative instruments that aids the process. The most basic and most used instrument is the cash, which is provided by the government of every country. Derived from this is the credit card, which is one of the most innovative instruments of purchasing since it can easily be used and is very convenient. There are other instruments for purchasing, but these two instruments are somewhat competing in many ways with no particular reason. In this study, a careful analysis between cash and credit card will be provided to give its readers wider range of knowledge about these instruments. Personal experiences from real people will also be provided to support the study. This will be a good reference for all the interested readers who do not have enough knowledge regarding the...
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...benefits? There is! Credit cards and most Americans should use them. It is estimated that 80% of American households have at least one credit card (Fast facts about credit card debt, 2006, para 10.) There are many types of credit cards, allowing anyone to choose the one best suited for his or her needs. Although there are some disadvantages to using credit cards, the advantages outweigh them by far. Most important, using credit cards can help to build credit history, which will allow the user to gain more credit and maintain a good credit score. Many types of credit cards offer perks or rewards and different interest rates (APR). One type of card is a major credit card such as Visa, MasterCard, Discover, and American Express. Each of these may offer rewards or perks such as frequent flyer miles, points for merchandise, travel, car rentals, or cash back. Another type of card is a store or gas station credit card; this type of card is issued by a particular store or gas station. These cards usually come with some sort of a rewards program, helping your dollar go further. For example after spending a certain amount of money, you receive a 10% discount coupon toward a future purchase. Many credit cards offer low interest rates to new members, on balance transfers and to members who keep their account in good standing. However, missing payments or paying them late could result in your interest rate being raised to a higher percentage. Using credit cards can offer many advantages...
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...Finance Loan from Family/Friends: Borrow money from another family member or friend, where length of loan, interest rate on loan and any other terms of the loan must be negotiated between parties. Advantages of a loan from family/friends is lower interest rates and more flexible repayment terms. Disadvantages of a loan from family/friends is lack of clarity with amount borrowed (the interest rate and the required payment terms) and also borrowing from friends and family can fracture relationships on a personal level Suitability Good Long or Short term finance option as terms of loan are decided between parties Interest rates are decided by parties Could be suitable source for Douglas Pty Ltd if family or friends have suitable amount of money for business and terms can be decided without affecting relationship. Bank Overdraft: Loan made by a bank in which the customer can withdraw more money from his or her bank account than has been deposited in the account. Advantages of bank overdraft is that it is a quick and flexible source of finance. They are easy and quick to arrange, with little fuss and It allows you to make essential payments when you need to borrow money. Disadvantages of bank overdraft are the costs as overdrafts carry interest (often at much higher than loans), Recall, the bank can recall the entire overdraft at any time. Security for overdrafts may need to be secured against your business assets, which put them at risk if you cannot meet repayments. Suitability ...
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...parts of growing up is becoming financially independent and this seems to be the case with maria. I think that Maria might get approved for a credit card but the credit limit will be the min of $300 dollars but still the best approach would be to have the parents as co-signers. The advantages of having a credit card for a college student would be to use it for certain necessities. Students need to be careful how they will spend the credit cards. Of they are going to use it they need to have a plan in mind but this would be one of the disadvantages that not all the student think thorough about all this. Some would spend it on thing that they would not need. Many college students need to live far away from home and they cannot always depend on their parent so the credit card would be an advantage item to have or if they have a flat tire and need replacement. Building credit history is another advantage. Disadvantage would be the young people have no experience and financial experience. College students should only have 1 credit card because they might end up into financial situations and ruin their credit score. If you keep one its easy to spend the money on the card and also able to pay back the balance. Credit cards can be very useful tools but everyone needs to do the research which one is the best. The carrying balance on the card needs to be regularly present and with minimum payment so you wont be paying in full. What the rate is ging to be at first nd the introductory...
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...Credit Cards and Cash There is very importance of money in our life. “When you have money in hand, only you forget who you are. But when you do not have any money in your hand, the whole world forget who you are”. This is the saying of a famous US Microsoft founder “Bill Gates”, from which one can easily understand the need of money in life for living and simplification. Among the different forms of money for financial transactions, Credit cards and Cash are the two major types. In spite of being both money, they have differences too. The differences between these two can be related as the advantage of one and disadvantage of others. Using of credit cards offers credit rewards like certain percentage of cash back which is not possible through the use of cash for transactions. Credit cards are more convenient than cash, as one can do online shopping using it while cash has disadvantage over it. Credit cards provides more security than cash. Use of credit card might require a signature and a PIN while for the use of cash nothing special is needed so if stolen cash draws more disadvantages over security. The loss of credit cards does not affect much as we can easily stop the use of that card and apply for the next card just by informing the bank. But if cash is stolen then one needs to rush to police station and needs to write a report of theft. Carrying a credit card, no one will know the amount of money you are carrying so even less chances...
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...and Smart Cards CMPS / ECBU 410: Management Information Systems Prepared by Joanna Carey Fall 2012 Instructor: Dr. Seta Whitby Table of Contents I. Introduction II. Body III. Advantages/Disadvantages of Electronic Cash & Smart cards and paper based currency IV. Conclusion V. References Introduction This research paper will closely investigate the relative importance between electronic and paper-based payments across the world. Although electronic payments are becoming more popular and easy to use, numerous surveys for payment instruments have shown the pace of change from an established payment method to a new payment method to be considerably slower than industry predictions. The movement to electronic payments and smart cards has been slow and has focused primarily on credit cards at the point of sale because bank emphasis is on expanding loan revenue and a historical reliance on checks which provide users with short-term credit. As technology continues to evolve the use of paper currency is becoming more obsolete. Although the modernization of digital money is changing into forms that don’t directly connect our electronic payments to our private information, such as smart cards, the transition into “cybercash” is still in the premature stages of development. This paper will highlight the advantages as well as the disadvantages of conducting...
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...Title: Credit Card Project Concept/Topic to Teach: Pre Algebra Standards Addressed: Anchor 7MA Numbers and Computation Specific Objectives: • Students will make a credit card proportional to an actual credit card. • Students will make an advertisement for their credit card. • Students will make a collage of their purchases. • Students will calculate their total purchases. • Students will enter into Excel the correct formulas to aid in their calculating of their payment schedule. (for all 4 schedules) • Students will write an analysis of the project and credit card spending. Required Materials: • Credit Card project hand out • Credit card receipts • Computer • Magazines • Calculator • Glue • Scissors Anticipatory Set (Lead-In): I will ask the students how would they like to have their own credit card!!!! Step-By-Step Procedures for Teaching the Lesson: 1. First, students will make a credit card proportional to an actual credit card. They can choose to make it as large as they would like (within reason) as long as it is in proportion. 2. Second, students will create an advertisement. It can be done in a variety of ways: billboard display, TV ad, radio ad, etc… 3. Third, students will be given the opportunity to go on a shopping spree with their credit card. Their limit is $10,000 and they must spend at least $1,000 but no more than $10,000. They...
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...imagined that a small card made of plastic would replace the hard and fast currency in our pockets. Credit cards have become the chosen mode of payments in today’s world. It is easy to carry, convenient, and now with the uprising of the Internet and online shopping, it has become even more important to own one. With a credit card, you use money issued by the lender, which then has to be repaid, with added interest to the payment. Credit cards are a great accessory to have when cash is running a little low. However, they also have their downsides. Credit card debt plagues millions of Americans in today’s economy, and if not used wisely, advantages can become disadvantages. First of all I will introduce couple of benefits that credit card provides for us. Unfortunately there are moments in our life when we need certain amount of money for emergency situations, for example money for broken or lost phone. So if we make an unforeseen, large purchase, credit allows us to buy it at once and settle up later. Besides it gives us the opportunity to spread the cost of a large payment over several months. Another advantage is that using credit cards can help us build a positive credit history. Having a good credit history is also very important, when the credit card owner is applying for loans, rental or even jobs. However there are some cons of having credit card too. Credit card companies make their money by charging high interest on all of the money we spend on our card. These interest rates...
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...105:JWQD032:bajch05: 5 CONSUMER CREDIT Credit Cards and Consumer Loans Starting Point Go to www.wiley.com/college/bajtelsmit to assess your knowledge of consumer credit. Determine where you need to concentrate your effort. What You’ll Learn in This Chapter ▲ Consumer credit options ▲ Credit card types ▲ Credit card risks After Studying This Chapter, You’ll Be Able To ▲ Compare advantages and disadvantages of using consumer credit to make purchases ▲ Assess the various types of consumer credit ▲ Take steps to protect and establish good consumer credit ▲ Evaluate credit card alternatives, including terms and costs ▲ Predict the hazards of credit card use, including the risk of identity theft baj01275_c05_106-133 02/09/2007 17:01PM Page 107 EPG_Team-C 105:JWQD032:bajch05: 5.1 WHAT IS CONSUMER CREDIT? INTRODUCTION Learning how to manage consumer credit effectively by reducing reliance on high-cost borrowing is an important component of financial success. In this chapter, we first look at the types of consumer credit and then how to apply for credit. This chapter examines the advantages and disadvantages of credit and how to protect your credit and correct credit mistakes. Finally, it discusses credit cards in more detail, including their risks. 5.1 What Is Consumer Credit? Any time you receive cash, goods, or services now and arrange to pay for them later, you are buying on credit. If you use credit for personal needs other than ...
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...Chapter 5 Consumer Credit: Advantages, Disadvantages, Sources, and Costs McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Consumer Credit Chapter Objectives 1. Analyze advantages and disadvantages of using consumer credit 2. Assess the types and sources of consumer credit 3. Determine whether you can afford a loan and how to apply for credit 4. Determine the cost of credit by calculating interest using various interest formulas 5. Develop a plan to protect your credit and manage your debts 5-2 Objective 1 Analyze Advantages and Disadvantages of Using Consumer Credit • Credit – An arrangement to receive cash, goods or services now, and pay for them in the future – Based on trust in people’s ability and willingness to pay bills when due • Consumer credit – Use of credit by individuals for personal needs, except a home mortgage – A major force in our economy 5-3 Uses and Misuses of Credit • Before you use credit for a major purchase, consider: – – – – – – Do I have the cash for the down payment? Do I want to use my savings for this purchase? Does the purchase fit my budget? Could I use the credit I’ll need in some better way? Can I postpone this purchase? What are the opportunity costs of postponing this purchase? – What are the dollar and psychological costs of using credit for this purchase? 5-4 Advantages of Credit • Current use of goods and services • Permits purchase even when funds are low • A...
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...105:JWQD032:bajch05: 5 CONSUMER CREDIT Credit Cards and Consumer Loans Starting Point Go to www.wiley.com/college/bajtelsmit to assess your knowledge of consumer credit. Determine where you need to concentrate your effort. What You’ll Learn in This Chapter ▲ Consumer credit options ▲ Credit card types ▲ Credit card risks After Studying This Chapter, You’ll Be Able To ▲ Compare advantages and disadvantages of using consumer credit to make purchases ▲ Assess the various types of consumer credit ▲ Take steps to protect and establish good consumer credit ▲ Evaluate credit card alternatives, including terms and costs ▲ Predict the hazards of credit card use, including the risk of identity theft baj01275_c05_106-133 02/09/2007 17:01PM Page 107 EPG_Team-C 105:JWQD032:bajch05: 5.1 WHAT IS CONSUMER CREDIT? 107 INTRODUCTION Learning how to manage consumer credit effectively by reducing reliance on high-cost borrowing is an important component of financial success. In this chapter, we first look at the types of consumer credit and then how to apply for credit. This chapter examines the advantages and disadvantages of credit and how to protect your credit and correct credit mistakes. Finally, it discusses credit cards in more detail, including their risks. 5.1 What Is Consumer Credit? Any time you receive cash, goods, or services now and arrange to pay for them later, you are buying on credit. If you use credit for personal needs other than home purchases...
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...paying, credit/debit cards, cheque clearing, phone banking, internet banking) Discuss the advantages and disadvantages to your choice of application. Generate a conclusion from your discussion that makes use of the learning objectives (as seen in the Moodle). With technology nowadays, banking online has been made possible. It has become a much more quicker and efficient way to exchange payments and handle bills through networks. There are many different examples of electric banking applications, such as ATMS, for cash withdrawals and bill paying. There is also the use of credit cards, debit cards to pay without using cash. Cheques can also be used; it is an easier way. There is a code at the bottom, which can be scanned. Phone banking is where people manage their financial payments by talking to a banker through a phone, telling them their credit card information to purchase what they want. ATM stands for an ‘automated teller machine’. It is an electrical device that allows normal people to do financial transactions without interacting with a cashier. It is very convenient for people as they are able to withdraw funds or deposit funds from anywhere without traveling all the way to a bank. Customers using ATMS need to insert their personal identification number to access their account. This is a safe and secure way of withdrawing and depositing payments. Credit cards are very efficient to use because it lets the user to carry a card rather than cash around. Credit cards...
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...the use of certain forms of non-cash payments in Russia" Submitted by: student of 2201 group full-time form of study Financial department Adamia T.T. Scientific advisers: Candidate of Economics, Senior lecturer Fediunin A.S. Candidate of Economics, Senior lecturer Shved E.V. Moscow-2015 Content Introduction 3 Chapter 1. Theoretical and legal basis for the use of non-cash payments4 1.1. Сoncept, mean and principles of non-cash payments in the Russian Federation4 1.2. Classification and instruments of cashless payments5 1.3. New banking technologies of cashless payments 10 Chapter 2. Analysis of non-cash payments on the basis of using credit cards12 2.1. Analysis of the credit card market of top Russian banks 12 2.2. The advantages and disadvantages of using credit cards17 Conclusion 19 Endnotes20 Bibliography21 Appendix 23 Introduction Throughout human history and in the present conditions, in particular, money is an inherent part of business life. All transactions related to the production of goods and services, are completed by cash payment. Moreover, such payment may take both cash and non-cash form. The relevance of this topic is defined by the fact that in this age, in the age of high technology and computerization, the general population of the earth increasingly prefers non-cash payments as faster and more convenient method of calculation, rather than using cash money. Also, an extensive...
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...Credit Cards Companies Marketing On College Campus Appendix B Credit cards companies should be on campus marketing to college student. Credit cards companies should go to campuses and have a discussion on the rights to full accurate information. Right under the equal credit opportunity Act, Characteristics: such as race,sex,marital status, religion, age, origin. However, it’s not against the laws to day to deny credit based on income and credit history. Once it was common for women to be denied credit, many women were without access to credit at all. Today, lenders can’t consider either marital status or gender; it’s much easier for women to obtain credit and establish a credit history than it once was. Equal credit opportunity Act prohibits lenders from requiring financial success in knowing how to manage consumer credit advantage and disadvantages allows you to spread the cost of more purchases. Advantages-Buy now, pays later, this type of advantage as long as you can afford payments without sacrificing other worthy financial goals, cash vs. credit. Disadvantages: are overspending, higher premiums, and pay more than the purchase, difficulty in purchasing a home because high consumer debts.. The more you borrow the worse your liquidity and debts ratio look. Bad credit hurts more than your ability to get a loan. Employers and landlords check your credit before during business with you. Types of credit are Open-end credit also, called revolving credit is...
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