CREDIT MANAGEMENT

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CREDIT MANAGEMENT

• PRESENTED BY
• DR. AA NEIDERMEYER

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FACTORS INFLUENCINGPURCHASING DECISIONS

• PERSONAL
• SOCIAL
• ECONOMIC

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THE PURCHASING PROCESS

• PRE-SHOPPING ACTIVITIES
• EVALUATION OF ALTERNATIVES
• SELECTION
• PURCHASE
• POST-PURCHASE EVALUATION

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PIECES OF THE PUZZLE

• TIMING
• STORE SELECTION
• BRAND COMPARISON
• LABEL INFORMATION
• PRICE COMPARISON
• WARRANTY EVALUATION

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PAYMENT CHOICES

• USE OF POCKET MONEY
• USE SAVINGS
• USE FINANCING
• COMBINATION(S) OF THE ABOVE

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ADVANTAGES OF CREDIT

• RETAIN YOUR CASH
• INSTANT GRATIFICATION
• ACCESS TO THE FLOAT
• ENJOY THE PERKS
• EASIER RETURNS
• CONVENIENCE
• SAFETY

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CREDIT DISADVANTAGES

• OVER BUYING
• COST(S)

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TYPES OF CREDIT

• CLOSED-END ACCOUNT
• OPEN-END ACCOUNT
• EQUITY LOAN

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ESTABLISHING CREDIT

• CHARACTER
• CAPACITY
• COLLATERAL
• CONDITIONS
• SCORING
• CREDIT REPORT INFORMATION

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MANAGING DEBT

• INSTANT COMFORT
• KEEPING UP
• OVERINDULGENCE
• EMOTIONAL DIFFICULTIES

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SMART SHOPPING

• BE AWARE OF UNIT PRICING
• ENGAGE IN BULK BUYING
• AVOID CONVENIENCE FOODS
• LOOK FOR / USE COUPONS
• SHOP WITH A LIST
• BEND A LITTLE