6.4 Economic uncertainty Flashcards
1
Q
What was the UK unemployment high?
A
7.8%
2
Q
What should people do if they believe they might lose their jobs?
A
- Save more whilst still earning
- Pay off some loans whilst they still can
3
Q
Is the number of people in trouble with their mortgage payments rising or falling?
A
Falling
4
Q
Examples of loan forbearance:
A
- Extending term of mortgage
- Giving the borrower a ‘payment holiday’
- Allowing them to owe more as long as they make at least some payments
5
Q
Advantages to the lender of showing forbearance to borrowers:
A
- Keep the asset of its loan on its balance sheet
- Not forced to write it off
- Avoiding bad publicity
6
Q
What is CUNA Mutual partnering with the Scottish Police Credit Union to provide members with?
A
Protection against failure to meet loan repayments owing to absence from work through illness (known as a ‘payment waiver’)
