On The Credit Consumption

Credit consumption is that the consumers borrow from banks or other flnancial instit'Utions tobuy goods or services for their persona1 use. Its main form is consumer credit, that's also the mainobject to be researched in this paper. On the micro-economic aspect, consumer credit enables theconsumers arrange their expenses neatly By using consumer credit, they can spend their fiJtureincome to fulfi1l the demands of nowadays. On the macro-economic aspect, consumer credit canen1arge the total demands of a country and make the economy increase fasteL Consumer creditderived from l8- l9th century in the western developed countries such as America and British, anddeveloped widely and fast after WOrid War II .Consumer credit has played an important role inthe economic growth. After reforming and opening of more than tWenty years, Chinese economyhas tumed from the seller's market to the buyer's market. The insufficiency of inner-demandsbecomes the main factor that makes it difficulty to keep the speed of economy increasing. So it isimportant to research the consumer credit, especially to research and refer to the experience of thewestem countries in developing consumer credit, and make a feasible plan fOr developing Chineseconsumer credit.This paper consists of eleven chaPters. ChaPter One is an introduction of consumer credit,dealing with the connotations of the related concepts such as consumption, credit and consumercredit, the characteristics and classification of consumer credit, the main body and therelationships of the consumer credit market, and the signification of developing consumer credit.Chapter Two is a theoretic description of consumer credit. At first, it gives a simpleintroduction of the theories about consumer credit of some famous economists. Then it ana1yzesconsumer credit from micro asPect to macro aspect, such as the relationship betWeen consumercredit and the highest utility of consumer and using IS-LM theory to prove that consumer creditcan make the economy increase faster At last, it analyzes the demands and supplies of consumercredit, and the balance of consumer credit market.Chapter Thre describes the history of consumer credit. Consumer credit emerged at feudalage. At that time, its main form was usury Modern consumer credit was divided to three mainperiods. The first period was that consumer credit based on commercia1 credit. The second periodwas that consumer credit based on bank's credit. The third period was the fast developing penodafter World War II *Then it analyzes the main conditions of the emergence and groWth ofconsumer credit, such as the 1evel of economy, market condition, the idea of consumers,financialcondition, 1egal and regUlatory environment, etc.Chapter Four is a research on housing credit. Housing credit is the most important part of theconsumer credit market. This chaPter analyZes and compares the housing finance system ofAmerica, British, Germany, Japan and Singapore.Chapter Five is a research of other kinds of consumer credit, such as loans to purchase cars,credit cards, loans fOr durable goods, loans for stUdy, and other kinds of consumer credit.ChaPter Six is an analysis of the personal credit system, which consists of the investigation,appraisal of the consumer's creditWorthiness, and the punishment system on the people Who breakpromise. The culturaI and legal environment is important tO set up the credit system. Creditreporting inshtUtions is the main body in the credit system. They collect and provide personal data.The credit system is an important basis of consumer credit. It makes the banks gain the1information of the consumers in shorter time and make loan decisions correctly, that decreases thecredit risks of consumer loans.Chapter Seven describes the Laws of consumer credit. It analyzes the Laws system ofconsumer credit in America, British and JaPan. The main Purpose of these Laws is to protect thebenefit of the consumeL which...