Loans and Interest Financial Capability. Loans and Interest Follow up questions for “Borrow Cards” game Follow up questions for “Borrow Cards” game What.

Slides:

Advertisements

Similar presentations

Unit Five Credit: Buy Now, Pay Later

Advertisements

Credit Buy Now, Pay Later. Credit Someone is willing to loan you money (principal) in exchange for your promise to pay it back, usually with interest.

Using Credit Chapter 25, pgs

Personal Finance Credit Review JEOPARDY 100 Definitions Types of Types of Credit 4 C’s of 4 C’s of Credit Your Rights Credit Report Potpourri

Introduction to Business & marketing

Understanding Loans and Borrowing Money. Development of Credit  In the Past  Credit Today.

Introduction to Business and Marketing Chapter 26.2.

In Unit 4 we will see the importance of using and managing credit effectively in the financial planning process.

Credit Cards. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc. Creditor A person or company.

CREDIT. ADVANTAGES OF CREDIT advantages: o Able to buy needed items now o Don’t have to carry cash o Creates a record of purchases o More convenient than.

Credit and Its Use.

Applying for Credit Chapter 26.1.

Unit 4 - Good Debt, Bad Debt: Using Credit Wisely PG 73.

Back to Table of Contents pp Chapter 26 How to Get and Keep Credit.

Credit You're in Charge What is Credit ??? Credit is an arrangement to Receive cash, goods, or services now and pay for them in the future!

Bellwork When do you think it is appropriate to use a credit card?

Credit and Borrowing BHS Senior Seminar. What Is Credit?  The ability to borrow money.

Loan To Own 1. 2 Introduction Instructor and student introductions Module overview.

GOOD CREDIT IS THE TICKET DO YOU KNOW HOW TO ACHIEVE IT?

PART 2: MANAGING YOUR MONEY Chapter 6 Using Credit Cards: The Role of Open Credit.

Borrowing Basics 1. 2 Purpose Borrowing Basics: Describes how credit works and the types of credit available. Helps you determine if you are ready to.

Name ___________ Date____________ Credit and Debt-Personal Finance pg

Happy Friday! 11/22/13 Today’s Agenda: If time: Moneypower.org quiz

BORROWING BASICS Money Smart Course

Credit Intro to Credit & Establishing Good Credit.

Credit Wisdom. Managing Money & Credit: A Lifelong Skill.

Smart Spending: Credit and Budgeting Glow Foundation 2010.

 a type of credit that is typically started at the time of purchase for a specific asset  Common for purchases of $1,000 or more  Ex. car, motorcycle.

Loan To Own 1. 2 Purpose Loan to Own provides general information on installment loans, including: Car loans Home equity loans.

Pre – Assessment Borrowing Basics.

Using Credit. Terms to know Credit Creditor Revolving Charge Account Installment Account Vehicle leasing Cash loan Collateral Cosigner Home equity loan.

Going Into Debt Americans and Credit. What is Credit? Credit: is the receiving of funds either directly or indirectly to buy goods and services now with.

CREDIT: Day 2. Types of Credit Credit Cards Loans.

The Basics of Credit Objective: To explain the concept of consumer credit, including major types and their benefits/drawbacks.

Credit Credit is a sum of money a person can use for a period of time before having to reimburse the lender.

Loan To Own. 2 You Will Know  The different types of consumer installment loans and  The right consumer installment loan for your needs.

Credit What YOU need to know!. What is Credit? Credit is borrowing money now to make an immediate purchase and promising to repay it later.

Copyright ©2004 Pearson Education, Inc. All rights reserved.8-1 What Is Consumer Borrowing? Obtaining funds from a lender under specific loan provisions.

Going into debt.  Credit- The receiving of money either directly or indirectly to buy goods and services today with the promise to pay for them in the.

Credit. What is it? – the ability of a customer to buy goods or services before paying for them, based on an agreement to pay later. Always investigate.

Credit Basics. Some old stats 83% of college students have at least one credit card 45% of college students are in credit card debt –Average debt over.

 What are advantages of credit  What are disadvantages of credit.

Chapter 4.  What is Credit? ◦ Principal + Interest  Installment Debt ◦ Equal Payments ◦ Durable Goods ◦ Longer Term = Lower Payment BUT ◦ More Interest.

Building: Knowledge, Security, Confidence Borrowing Basics.

Buy Now, Pay Later – Where’s the Catch?. What do you think...  If you ever wanted to get a loan or a credit card what would you have to do?  Could you.

Going Into Debt Chapter 4. Americans and Credit Chapter 4, Section 1.

Using Credit SSEPF4.a, SSEPF4.b, SSEPF4.c. Loans and Credit Cards: Buy Now, Pay Later The U.S. economy runs on credit. Credit – The ability to obtain.

HOW TO GET AND KEEP CREDIT. PICKING A CREDIT CARD You will have to fill out an application. It will ask about where you live, where you work, what other.

Calculating Cost Of Credit. Types of Credit Closed-End Credit ◦ One-time loan that you pay back over a specified period of time in payments of equal amounts.

UNIT FIVE. CREDIT: BUY NOW, PAY LATER. Coming soon to a mailbox near you: Credit Card offers.

Jeopardy Begins with c Loans Poor credit Consumer Credit consumer Finance Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final.

Credit Credit: borrowing money to pay for something now while promising to repay it later. Lender: the person loaning the money Borrower: receives the.

Banking and Credit.

Back to Table of Contents pp Chapter 26 How to Get and Keep Credit.

Credit – You’re in Charge.  Credit – the ability to borrow money in return for a promise of future payment. ◦ Credit has the opposite trade-off as saving.

Loan Trivia Instructions: 1.Go to the next slide to display the Game Board. Click on the cell for the selected category and dollar amount. 2.The questions.

Credit. credit is money loaned in exchange for your promise to pay it back later with interest. interest is a amount of money paid to use someone else’s.

Chapter 4 section 1: Going into debt Credit: receipt of money either directly or indirectly used to buy goods and services in the present with the promise.

You and Your Credit UNIT VII – Personal Financial Literacy.

Personal Finance Section Credit and Debt. Personal Finance Section Credit gives extra punch to your purchasing power; but reckless handling of credit.

Credit The Good, the bad, and the ugly. CREDIT CREDIT CAN MAKE OR BREAK YOUR FUTURE PLEASE PAY ATTENTION TO THIS IMPORTANT LIFE LESSON – IT IS SERIOUSLY.

Credit Test Review. What card takes money directly from your checking or savings account?  Debit Card.

Objective 5.01 Credit Management 1. Topics Main types of credit Common advantages and disadvantages of businesses using credit Cost of credit Main factors.

Consumer Economics Credit Credit Investing Investing.

Write down one costly item that you would buy right now if you had enough credit. What steps can you take now to start building and maintaining a strong.

HOW TO GET AND KEEP CREDIT

Credit Terminology.

Personal Finance: Credit and Interest,

Unit 5: Personal Finance

How to Get and Keep Credit

Presentation transcript:

Loans and Interest Financial Capability

Loans and Interest Follow up questions for “Borrow Cards” game Follow up questions for “Borrow Cards” game What were you trying to borrow from your classmate and were you successful in the negotiation? Why or why not? What were you trying to borrow from your classmate and were you successful in the negotiation? Why or why not? What were the terms and conditions you have to follow in order to borrow the item? What were the terms and conditions you have to follow in order to borrow the item? Was there anything that influenced you to loan the item to that person? Was there anything that influenced you to loan the item to that person?

Loan term – the length of time you have to pay off the loan, with interest Loan term – the length of time you have to pay off the loan, with interest Interest – the sum paid or charge for the use of money or for borrowing money Interest – the sum paid or charge for the use of money or for borrowing money Planned borrowing should only be used for items that are too expensive to be purchased without using credit, like cars, homes, home improvement, furniture, computers, major appliances, etc. Loans and Interest

Annual Percentage Rate (APR) – the total amount of what it costs you to use credit in a given year; it is expressed as a percentage of the amount borrowed. One of the first steps in making wise financial decisions is to make sure a person is receiving a loan with a reasonable and competitive APR. Unsecured loan – a loan that is issued and supported only by the borrower’s creditworthiness, rather than by collateral. Usually offered at higher interest rates and have lower borrowing amounts than secured loans. Examples: Personal loans, personal lines of credit, student loans, some home improvement loans. Secured loan – a loan where the borrower offers collateral for the loan. Usually offer lower rates, higher borrowing limits, and longer repayment terms than unsecured loans. Examples: home equity loan, home equity line of credit, auto loan, boat loan, recreational vehicle loan, home improvement loan. Loans and Interest

Cosigner – a joint signer of a negotiable instrument, esp. a promissory note. Collateral – security you provide a lender, something of equal or greater value than the loan that the lender can take away if repayment of the loan does not occur. Fixed-rate loan – a loan in which the interest rate will stay fixed for the entire loan term. Examples: student loans, mortgages, loans for businesses, auto loans, boat loans, home improvement loans. Variable-rate loan – a loan in which the interest rate fluctuates as market interest rates change. Examples are mortgages, credit card, line of credit Loans and Interest

Capacity – refers to present and future ability to meet payment obligations. This might include looking at how long you have worked and what you make to determine if you can make the payments Capital – refers to value of assets and net worth. The value of what you own Character – refers to how you have paid bills or debts in the past. A good determiner of this would be your credit history. Loans and Interest

What is a sign that someone has too much debt? What is a sign that someone has too much debt? A good rule of thumb is the Rule A good rule of thumb is the Rule Spend 70 % of your income on living expenses, invest or save 20%, and use the remaining 10% to pay off debt. Loans and Interest

Ten signs of over indebtedness: Exceeding debit/credit limit; Running out of money; Paying only the minimum due; Requesting new cards and increases in credit limits; Paying late or skipping payments; Not knowing how much you owe; Taking add-on loans; Using debt consolidation; Receiving notice of repossession or foreclosure; and/or Experiencing garnishment. Loans and Interest

The top 3 financial missteps with credit cards and consumer loans: Failing to shop for the lowest APR on their credit cards and consumer loans. Paying more than 15% of income toward debt payments. Failing to regularly check the accuracy of credit bureau files. Loans and Interest