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Emprunts
Borrowing
Question | Answer |
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Where to Borrow | commercial banks, credit unions and building societies. |
Overdraft | bank allows you to spend more money than you have in your account. |
Term Loan | loan from between 2 to 5 years. |
Long-Term Loan | loan for a period of over 5 years. |
Mortgage | loan for a house. It is over a 20 year period and if you don't pay it the bank sells the house. |
Credit Union Loan | loan from the credit union. |
Moneylender | a person who gives loans to other people who can't get a loan anywhere else. They carry a very high rate of interest. |
Rights | to be told the APR, to know the cost of the loan, to know the number of instalments and the right to be able to cancel the loan. |
Responsibilities | budjeting properly, ensuring the loan is paid on time, tell the truth and use the money for the purposes agreed. |
Interest | the price of borrowing money. |
Flat Rate | annual rate calculated as a percentage of the original sum borrowed. |
Annual Percentage Rate (APR) | the actual rate of interest charged on a loan. |