Methods of payments
- Created by: eloisemolly
- Created on: 08-05-17 09:57
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- Methods of payment
- Direct debit cards
- Can only spend what is in the account, so you have to save up in order to buy
- Safer and less chance of fraud
- Cant over spend
- Cash
- Usually accepted everywhere
- No interest charges
- When lost or stolen its difficult to trace
- Credit cards
- Spending spread over a period of time
- Interest charges can be high
- Can be used world wide
- Fraud is a problem
- Hire purchase agreements
- Interest is high
- You don't need the money up front
- Goods can be taken away if the consumer cannot pay
- Credit agreements
- Some agreements can be interest free
- Some interest rates can be very high
- Mortgages is a long term example
- Bank overdraft
- Interest is only charged on overdrawn amount
- Helpful to cover emergency expenditure
- If permanent it may be a costly way to finance expenditure
- Direct debits and standing order payments
- Fixed regular payments e.g. rent, mortgage
- Helps with budgeting
- Direct debit cards
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