1. Chapter 8 Preserving Your Credit

2. Slide 2 Buying a Car A car loan is usually an installment loan with monthly payments. 8-2 Long-Term Debt Repayment Make a down payment (cash deposit) toward purchase price. Can trade-in existing car as down payment. Consider a preapproved loan, dealer financing, or a lease.

3. Slide 3 Buying a House 8-2 Long-Term Debt Repayment A down payment of 10 to 20 percent of the purchase price is often required. Property is used as collateral for the loan. A conventional loan lasts up to 30 years. An FHA loan is a government loan. Closing costs are expenses paid to get a loan, such as appraisal fees and credit report fees. A mortgage is a long-term debt agreement used to purchase real estate.

4. Slide 4 What Is a Debt Repayment Plan? 8-2 Long-Term Debt Repayment A debt repayment plan is a strategy for paying off debt to reduce interest paid.

5. Slide 5 Debt Repayment Plans 8-2 Long-Term Debt Repayment Student loans are deferred-payment loans; payment is postponed until your education is completed. A shorter mortgage (15 yr. vs. 30 yr.) means less interest but higher monthly payments. A rent-to-own agreement applies the monthly rent toward the purchase price of the property.

6. Slide 6 Building Communications Skills 8-2 Long-Term Debt Repayment Formal Speaking Begin with a clear statement of your goals. Use an outline to develop the content. Consider the audience. Use slides to help illustrate points and add interest. Practice the speech within the time limit. Make eye contact and speak with confidence.