Financial management Flashcards
Categorise the consequences of poor financial management
Personal, social and legal consequences
Personal consequences
Inability to satisfy wants and needs, stress and debt
Social consequences
Relationship breakdown and social isolation
Legal consequences
Garnished wages and sequestration orders
Creditors
People that you owe money to
Writ of execution
A court order that allows a court official to seize and sell your property
Sequestration order
An order which declares you bankrupt
What does NPII stand for
National Personal Insolvency Index
What is NPII
An open online record of people who have become bankrupt
Bankruptcy
When a person is unable to pay their debts and gives up their assets in return for protection from their creditors
What problems will you face if you are bankrupt
Harder to obtain a loan, may have to pay a bond before connecting to gas or electricity, harder to travel overseas and possible garnished wages
Liquidated
A business is liquidated when under debt and it’s assets are sold to pay off the debt
Fixed personal loan
Has a constant interest and certain duration
Variable personal loan
Has a changing interest according to the market
Alternative payment plan
When you change the details of your loan due to hardships
