If you decide to buy consumer goods or services and pay for them in installments, there are various forms of finance to choose from that cost different amounts and conceal different risks.
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Credit is money made available to you when you are not in a position to raise the money yourself but can pay back the money later. |
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The finance company which you choose will check your creditworthiness before deciding whether you can be given credit. |
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A credit card can be a useful means of payment, in particular for Internet shopping or shopping abroad. If you consider making use of a credit option, credit cards can be used as your means of credit. |
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Debit cards differ from credit cards in that purchases are debited directly from the card holder's bank account. |
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Unlike debit cards, prepaid cards only allow you to withdraw up to the amount previously loaded onto them. |
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A number of useful tips will help you find the right type of card for your needs and protect it from abuse. |
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A loan is generally a medium to long-term credit, which is paid out all at once and is repaid in installments.
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Most people do not have enough money to buy their own apartment or house. Therefore, they opt for a mortgage (i.e. credit that is secured against their property).
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In the case of leasing, you pay a monthly fee to use a consumer item, generally a car. You undertake all the duties of an owner without any of the rights.
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This area includes bank account overdrafts, store cards and hire-purchases. |
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"Buying on tick" is regulated nationwide by a single piece of legislation: the Consumer Credit Act.
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