Topic 7 - Dealing with Unforeseen Circumstances

Question 1

What is ‘what if’?

Answer 1

‘What if’ is a function on a spreadsheet whereby user can set out table of calculations and then change one of the variables to see what the effect will be on the final results.

Question 2

Variables that change frequently

Answer 2

Interest rates
Inflation
Exchange rates
Benefits

Question 3

Annual maximum university fees

Answer 3

£9,000

Question 4

Over-indebted definition

Answer 4

Someone owes more than they can afford to repay.

Question 5

How to improve credit rating

Answer 5

Keep up to date with payments
Set up direct debits
Use credit from time to time to show you can manage sensibly

Question 6

A prospective lender can see:

Answer 6

How much someone has borrowed
If borrowing has increased over time
How many loan applications have been made
Defaults

Question 7

What does financial footprint decide in your financial future?

Answer 7

If you can borrow money

Price they pay for credit

Question 8

Universal credit replaces what six benefits?

Answer 8

Income-based jobseekers allowance
Income-based employment and support allowance
Income support
Working tax credit
Child tax credit
Housing benefit