Borrowing Flashcards
1
Q
Shirt term loan
A
Less than one year
Overdraft
2
Q
Medium term
A
1 to 5 years
Term loan
Personal loan
3
Q
Long term
A
5 years or more
Mortgage
4
Q
Collateral
A
Something of value used as security against a loan
5
Q
Guarantor
A
A person (often a parent) who promises to repay the loan if you do not
6
Q
Deferred payment
A
Payment in instalments
7
Q
Renting
A
Regular payments in exchange for the use of something
e.g. video game
8
Q
Leasing
A
A special form of renting where you make payments for an agreed period
9
Q
Hire Purchase (HP)
A
Paying in instalments for an agreed period but now owning the goods until the last payment
10
Q
3 ways to pay for something
A
Cash
Borrow
Credit
