I - THE INSTITUTION OF CREDIT

1 - What is credit?
Credit is one of the most used ways in modern economies to allow and realize consumer relations among people of the same town, city, state, or country, or even worldwide. That is so because it makes people start consuming goods or services, by committing to pay for them in installments, which is also known as "hire-purchase".

2 - How does credit promote economical and social development?
By allowing for business to be realized, credit contributes for the increase in consumption of goods and services, which in turn increases job opportunities in the industry, commerce, and other segments of the economy.

Thus, one concludes that credit exerts a social and economical influence, due to its ongoing contribution for the development of towns, cities, states, and nations, for, with the increase in commerce of goods and services, there is a proportional increase in tax collection, which results in benefits for society.

3 - Why is it important to have credit?
First, let us understand the basic expectations of people involved in consumer relations. Namely:

• The purchaser (consumer) - expects to find in the product or service purchased the qualities that are inherent to it, as well as all advertised characteristics.
• The seller (vendor) - expects to be paid the due price in the due date, in order to keep his or her enterprise working, which includes paying employees, suppliers, and other economic agents or persons involved.

Thus, we can assert that is important to have credit, so that, when returning to the vendor, it is possible to make a new purchase, considering that past commitments have been settled/paid in their due dates.