15. What do you know about modern market of consumer finance services?

The Consumer Financial Services industry consists of companies engaged in personal loan services, such as credit card services, mortgage lenders and brokers, consumer leasing providers, such as for automobiles, and personal and student loan services. The Consumer Financial Services industry excludes lease financing of commercial equipment, classified in Financials - Specialty; and consumer brokerage and investment services, classified in Investment Services.

Credit Card - card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individual's credit rating. Credit cards have higher interest rates than most consumer loans or lines of credit. Almost every store allows for payment of goods and services through credit cards. Because of their wide spread acceptance, credit cards are one of the most popular forms of payment for consumer goods and services in the U.S. Types: standard or plain-vanilla credit card has no extra perks or benefits; A balance transfer credit card offers an introductory interest rate on balance transfers; A rewards credit card pays rewards on the purchases you make; A premium credit card has lots of perks and benefits like concierge services; A retail credit card can only be used at the store associated with the credit card; A secured credit card requires you to make a deposit against the balance.

Under a Car Lease, the financier purchases a car on behalf of the customer, and then leases the vehicle to the customer in return for monthly rental payments. At the end of the term (length) of the lease, the financier gives the customer the option to purchase the vehicle in return for a final installment (residual value). Alternatively, the customer may choose to "trade in" the vehicle, or re-finance the residual and continue the lease.

Benefits of a Car Lease:

Flexible contract terms ranging from 12 to 60 months (one to five years);Fixed interest rate;Fixed monthly lease rentals;Costs are known in advance;A residual can be applied to a lease, lowering monthly payments;Tax deductions are available when the vehicle is used for business purposes;As the GST contained in the car's purchase price is claimed back by the financier, only the vehicle's price exclusive of GST is financed, lowering monthly payments; Ability to make advance lease payments for tax deduction or cash-flow purposes; The lease is secured against the vehicle, allowing lower interest rates

Car Leasing is suitable for companies, partnerships, sole traders and individuals where the leased vehicle is used for income producing purposes. It is also ideal for employees who want to salary package a vehicle through a Novated Lease as part of their remuneration.

Students loan - a loan offered to students which is used to pay off education-related expenses, such as college tuition, room and board at the university, or textbooks. Many of these loans are offered to students at a lower interest rate, such as the Perkins loan or Stafford loan. In general, students are not required to pay back these loans until the end of a grace period, which usually begins after they have completed their education.

A personal loan is an unsecured loan, meaning the borrower does not put up any collateral or security to guarantee the repayment of the loan. For this reason, personal loans tend to carry high interest rates. If a borrower owns a home, a lower interest rate alternative is a home equity loan. However, this option requires that the borrower put up his or her home or other real estate property as collateral.

A loan, whether a personal loan or another type of loan, is typically used to finance a large, one-time purchase or expense. The borrower is given all the money at once and agrees to pay back a certain amount per month until the debt is repaid. The monthly payment includes both principal (the amount you borrowed) and interest.

Personal loans tend to carry higher interest rates than loans secured by collateral such as a home. The relatively high interest rate compensates for the fact that you aren’t guaranteeing repayment of the personal loan with some kind of asset.

A personal loan may be the only option for people who have established little credit, or for those who don’t own a house, real estate, or other assets to use as collateral. A personal loan may be a sensible alternative to financing a major expense with credit cards, which may charge even higher interest.