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Household Purchases

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The document outlines different payment methods for goods and services: 1) Cash purchase involves paying upfront in cash or check. 2) Credit purchase allows receiving goods now but paying later. 3) Credit/store cards use credit to pay for items, with store cards only valid at certain shops. 4) Renting pays to use a good temporarily without owning it. 5) Hire purchase allows households to pay for items like appliances over time through a financial institution that collects installments.

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Household Purchases
Cash Purchase the goods and services are paid for in cash, by cheque or by laser at the time of purchase.
2. Credit Purchase the buyer receives the goods immediately but agrees to pay the seller at a later date.
3. Credit Cards/ Store Cards Customers use credit cards as a means for paying for goods and services. Store Cards are similar to credit cards except they can only be used in a particular shop.
4. Renting paying for the use of a good for a short or long period of time without ever owning the good.
5. Hire Purchase is used by households to purchase items such as fridges, home computers, audio equipment etc.
The hire purchase deal involves three parties the buyer, the seller and a financial institution. The financial institution pays the seller in full for the asset and then collects regular instalments form the buyer over an agreed period of time. These instalments in total will cover the purchase price, interest charges and the financial institutions fee.

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Household Purchases

  • 2. Cash Purchase the goods and services are paid for in cash, by cheque or by laser at the time of purchase.
  • 3. 2. Credit Purchase the buyer receives the goods immediately but agrees to pay the seller at a later date.
  • 4. 3. Credit Cards/ Store Cards Customers use credit cards as a means for paying for goods and services. Store Cards are similar to credit cards except they can only be used in a particular shop.
  • 5. 4. Renting paying for the use of a good for a short or long period of time without ever owning the good.
  • 6. 5. Hire Purchase is used by households to purchase items such as fridges, home computers, audio equipment etc.
  • 7. The hire purchase deal involves three parties the buyer, the seller and a financial institution. The financial institution pays the seller in full for the asset and then collects regular instalments form the buyer over an agreed period of time. These instalments in total will cover the purchase price, interest charges and the financial institutions fee.