Name of student: Lại Thị Huyền Trà

Class: BAK9
Assigement (08/10/2021)

1) What are the advantages and disadvantages of installment payment?

- Define: Installment is a form of purchase in which the buyer does not need
to pay the entire amount in one payment, but can pay it by term (6 months, 9
months, 12 months...) with many interest rates. different (some companies
also support interest-free installments).

- Some of the common installment services can be mentioned such as: ACS
installment payment, PPF installment payment, Home Credit installment
payment, etc. Along with the traditional direct installment payment method,
there is also an online installment payment method., installment payment via
credit card ..., meeting the diverse needs of many different customers.

- The advantages of installment payment:

• Installment is a benefit for most low-income groups. This program is

specifically designed by companies to raise the living standards of low-
income groups. If a person earns a meager income and wants to provide
good comforts to his family or achieve some of his dreams, these plans will
help him a lot.
• These programs allow you to pay for things you can't afford or can't afford.
We may decide the cost over a larger period to avoid a full month impact.
• We also have the option to withdraw before we pay the full amount.
• Cheaper than personal loans.
• Profit maximization
• Minimum sales duties
• Fixed rate
• Provides exit options.
• A person can own some things even though they don't have enough money.

- Disadvantages of installment payment:

 • Installment plans are loans where the borrower has to pay principal and
interest monthly.
• The interest rate can change at any time and if it becomes more, it becomes
a burden on the payer.
• Installment loans with larger monthly payments.
• Installment loan means long term commitment. So much can happen in this
long run, it can make us regret choosing these plans.
• This installment system makes everyone a luxury. They are addicted to the
habit of unnecessary borrowing, making their lives always stressful and
unstable.
• Buy items with permanent debt installments.
• It forces the payer to borrow money from some other person for monthly
installments. This becomes a loan-pay-borrow cycle.
• More expensive than the actual cost.
• Higher fixed costs per month.
2) What is the buying culture in my hometown? Why?
In my hometown, people often go shopping for each other, one person buys the
other's stuff and sells it. For example, going to the market to buy meat, there are
many butchers there, but buyers only buy people they know.
They only buy home-made products such as vegetables, eggs, sausages or
ready-made food, fast food, people only go to people they know to buy.
For example, today, Mrs. A sells vegetable, Mrs. B is a neighbor and she will
come to buy vegetables for Ms. A. But Mrs. B sells clothes, then Mrs. A goes to
Mrs. B's house to buy clothes for Mrs. B.
Almost all the items they buy like that from food, clothes, shoes to consumer
goods they only buy from acquaintances or neighbors, their friends sell these
items that they need. But if there are 2 places that both sell that item, but with a
price difference of 1 or 2, the buyer will buy it cheaper.
Because they think such things are safe and when they buy from acquaintances,
they will get a discount and easily bargain the price.