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l e c r é d i t
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Installment credit
Installment closed-end credit is also used by department stores. A particular amount of money is lent to the consumer, typically the total purchase price of the goods purchased and no more. For example, if you purchase a sofa and chairs at a furniture store, the store might give you credit up to the full amount of the sale, which will be repaid with interest, but the store does not make further credit available to you under that agreement. The full amount of the principal and interest must be paid within a pre-determined time period.
Installment closed-end and noninstallment credit does not operate in the same manner. The debtor must make the required payment and complete the payment of interest and principal within the pre-determined time period. |
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