Management Credit

Your company's method to preventing late payments and defaults from customers is refer
red to as credit management. An strong credit management plan invests a significant amount of ti
me and effort in identifying risks, analyzing their potential for loss, and avoiding the inherent ris
ks of lending money. 

Credit management is one of the most crucial aspects of any organization and should not be
disregarded by any firm that deals with credit, regardless of its industry. A financial institution's
stability and continued profitability are dependent on good credit management, and declining
credit quality is the most common cause of poor financial performance and condition. The
largest danger of a bank, like any other financial organization, is lending money and not
receiving it back.
Credit risk management is a vital component of a comprehensive risk management strategy and
is critical to any financial organization's long-term success.

CONFESSION OF A SHOPAHOLIC REVIEW IN RELATION TO MANAGING

CREDIT
My review of this movie, titled "The Confession of a Shopaholic," is in line with our topic
managing credit for me, it boils down to when star Rebecca Bloomwood’s favorite pastime led to
a series of debt problems due to Her credit card limit was maximized and she got 12 credit cards
for a shopping spree.
When she began to understand how she relied on buying new things to live a comfortable life,
Rebecca described her compulsive pattern like this "When I shop, the world becomes better, and
the world becomes better.
“Then it just no more, I have to start all over again". She is more than just a person who likes
shopping. Instead, the things she buys define her identity.
For example, when thinking about buying that expensive green scarf, she imagined the model
saying to her: "This scarf will become part of the definition of your soul." In other words, you
are what you bought.
She is well-known in the movie, wandering from one fashion counter to another, filling her
shopping cart like a madman buying clothes and shoes. It's all rosy until it comes to paying
because all of Rebecca's credit cards are maxed out. As you can see, this lady knows nothing
about financial management. She has too much credit card debt and is getting out of control. This
is not only related to her work, but also to her interpersonal relationship. Soon, she found herself
in a hypocritical situation, becoming a “The Girl in the Green Scarf” providing financial advice
but not following any advice. it is daunting in many ways. It teaches the importance of financial
management especially in managing credits.
My takeaway from the movie about managing credit is that we all have quite a few spontaneous
purchase moments. Therefore, when deciding whether to buy a product, The “think before you
buy" is a useful process, it is important also to evaluate your current spending and how you
spend it. We can find patterns in the way we spend money so that we can solve the problem
appropriately. Whether we like luxury goods or can never resist sales, budget planning is also
important in managing credit in the movie Rebecca doesn’t have a plan in budgeting her
purchases/lifestyle and that caused her debt to skyrocket by her interest charges and freezing her
credit cards by not using it won’t help pay back her debts for this is one of the most memorable
scenes in the film. Although this strategy may prevent her from using a credit card, for the time
being, it is not a viable solution for long-term debt management.
Shopaholic is hardly an eye opener movie. It illustrates the hunger that afflicts so many people
today. Desire to be satisfied by something. Anything for those who are capable even those who
are not capable, such as Rebecca's short time accomplishments are as close as the nearest
shopping mall. But as Rebecca pointed out so simply, this feeling will only last for a moment.
Then you have to do it again.
The Movie teaches us to be a wise spender over a madman who do impulsive decisions in
buying. For me, Rebecca teaches us the reality when we spent too much compared to what we
got but even she learned to handle her credits responsibly the hard way, she left us important
lessons for us to learn.