Borrowing Monies

• Finance
• Higher Education (non-degree)

If we went on a trip, what would you like to do?

When should you borrow money?

1. To purchase a car
2. To pay for a computer
3. To go on a holiday
4. To use for a house deposit

natwest.mymoneysense.com

Why would people borrow money from the bank or a union?

advantages & disadvantages
of borrowing monies

Advantages

Loans can get people out of a tight spot.
There a different type of loans.
You can consolidate debt with loans.
Help you manage your personal finances.
They have predictable payment schedules.

Disadvantages 

 You have to pay the money back + then some.

It could result in bad credit.

You'll pay large interest rate.

You might not get the amount you want.

It is a long term commitment.

Penalties can be extremely high.

 Before you get a loan think about:

Which loan period would best suit my circumstances?

What is the APR?

Can I afford the monthly repayments?

What are the risks and consequences if I miss a repayment?

The ___________________ is a voluntary organisation which helps people to resolve their problems with debt, benefits, employment, discrimination, housing and other issues.

 

A  ___________________ is a non-profit-making, community-based organisation whose members can deposit and borrow money at low interest rates.

 A ___________________ is a profit-making organisation that takes in funds called deposits and then lends money in the form of loans, eg a mortgage.

The  ___________________ is a government- funded organisation offering advice and support to people in debt.

Expenditure        Bank        Organisations      Income       Citizens Advice Bureau  

Credit Union       Debt         Budget        National Debtline        Advice