Chapter+Summary

Economic, social, and personal factors influence your buying decisions. By following a research-based approach to purchasing goods and services, you can get more values for money. Smart buying stategies include timing your purchases, selecying the dtore carefully, comparing brands, reading mlabels, comparing prices, and evaluating warranties. The five ways to resolve consumer problems are to return to the place of purchase: contact caompany headquarters: get help from a consumer agency: investigate dispute resolution programs: or take legal action. Legal options available to consumers include bringing a case to small claims court, joining in a class-action suit, hiring a lawyer, and seeking help from a legal aid society. Financial services can be divided into three main categories: savings, payment services, and borrowing. Electronic banking services include direct deposit, automatic payments, automatic teller machine (ATM), and plastic payments. You can choose from among deposit-type and nondeposit-type institutions. Among the types of saving plans are regular savings account, certificates of deposit, money market accounts, and US Savings Bonds, Understanding and benefits of different savings plans will help you make sensible trade-offs. Evaluate savings plans on their rates of return, the effect of inflation on interest, tax considerations, liquidity, restrictions, and fees. Evaluate checking accounts mfor their restrictions, fees, and charges, interest rates (if any), and special services. Using a checking account involves opening an account, writing checks, making deposits, and reconciling your checkbook to the bank's statements.

By understanding the advantages and disadvantages of consumer credit, you will be able to use it in a way that provides personal satisfaction and allows you to meet your financial goals. The two basic types of consumer credit are closed-end credit and open-end credit. If you're thinking of taking out a loan or applying for a credit for a credit card, you should first determine how much it will cost you and whether you can afford it. Most lenders establish policies for deteminiing who will receive credit based on the fives C's of credit. Building and maintaining a good credit rating is essential to your use of credit now and in the future. Knowing hoe to handle billing errors and fruad will prevent others fromm damagind your credit ratings. Consumer credit laws are designed to protect your rights as a consumer. If you're having trouble paying your bills, you can try work out an adjusted repayment plan with your creditors, or you can contact a nonprofit financial counseling program. Declaring bankruptcy is a last resort to manage your debts.