Family Economics And Consumer Education 3 (2+1)

Lesson 11 :Credit

Responsibilities As Credit Users

A family intending to use credit must ensure that it has adequate margin to meet the future contingencies after paying the credit installment. It is important not to overestimate the future incomes. One also should not underestimate the uncertainties in the future. A family must be careful not to buy any more today than it can pay tomorrow.
Following suggestions would be useful in using credit

1. Consider financial situation and ability to pay debts before signing a credit agreement.
2. Read the contract carefully before signing.
3. Pay the installments on time.
4. Inform the creditor if payment is to be delayed due to any reason.
5. Pay the penalty if there is lapse in payment.
6. Accept the consequences listed in the contract if it is not possible to meet all requirements.
7. Approach the consumer forum in case of any irregularity if committed by the creditor.