Managing Personal Finance Flashcards
1
Q
What types of borrowing are there?
A
Overdraft-let’s you borrow extra money through your current account.
2
Q
What’s a personal loan?
A
Borrow money for a specific purpose.
3
Q
What’s a hire purchase?
A
Customer agrees to a contract to buy an asset by paying off the amount in regular instalments. Remains property of seller until all payments have been made.
4
Q
What’s a mortgage?
A
Large sum of money paid back over a long period of time.
5
Q
What’s a credit card?
A
Type of loan and get credit on your credit card and paying back some or all of your balance each month
6
Q
What’s a payday loan?
A
A short term solution for money but has very tight interest.
