Following up on an earlier post where I discussed the frustrations involved in the nature of contracts and locked in agreements for these things in North America, let's now look at how the Chinese do it.
Put simply there are no contracts for both cell phones and gym memberships and everything operates on a pay-as-you-go system. The catch (if you can call it that) is you first pay the whole lump sum up front.
For example if you want a one year gym membership you pay the cash up front. In this way it doesn't matter if you "break the contract" because you've already put out the cash.
The North American system works on credit where you use first and pay later, on a monthly basis. The Chinese system is the antithesis of credit where you pay up front first then use the services.
No wonder the Chinese are used to the idea of buying everything in cash because that's how things work. The concept of consumer credit is something I'm rather opposed to. Even though I use a credit card, I pay back in full right away and it`s only for convenience and necessity for some things that I have it.
The western cultural CONCEPT of loans and credit and borrowing money is something I am opposed to viscerally.
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