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An overdraft allows you to borrow money using your current account, so you can spend more money than is in your account. This has interest on it if it is a credit card.

Linked deposit account: Another checking account or a savings account is linked to the protected account.

Overdraft line of credit: This feature links your protected account to an established line of credit

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Mortgage - A loan that you can use to buy a property and pay off in monthly instalments.

Fixed Rate - A home loan with a fixed interest rate for the entire term of the loan.

Current rates for a 2 year deal? - 5.47%

Advantages - If interest rates go up then yours has stayed at a fixed value.

Disadvantages - If the rate goes down then you are stuck at a fixed interest rate.

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A credit score is a prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports.

Reducing your balances is the most effective way to boost your credit score. Provided you have no derogatory marks on your credit reports, such as late payments

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Mortgages are loans taken out from your bank for a property that you have to pay back over time plus the interest. Fixed rate is a set amount of money that the bank wants you to pay each month and this will be the same every month. Current rates on a 2 year deal is 4.54%. Advantages include flexibility yo adapt your plan. Disadvantage includes if interest rates decrease your likely to pay mortgage rates than variable rate deals

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Klarna is a “buy now, pay later” provider that offers multiple payment plans that can break up the cost of your purchase for zero interest. It also offers monthly payments that may charge interest. You can download the Klarna mobile app to shop online and in stores. This can affect credit score when abused.

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A mortgage is a type of loan specifically used to purchase real estate.

the average two year fived rate mortgage deal has risen to 5.43% in October 2022.

advantage- home ownership, equity build up, tax benefits.

disadvantages- debt obligation, interest cost, market risk.

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credit scores are set up by credit reference agencies and when you apply to them you will be given a credit score which can go up or down depending on your financial decisions with loans if you have a good credit score you will be more likely to be given your loan and better interest rates however if it's worse you could not be given your loan or if you are very rough interest rates

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A fixed rate mortgage is a mortgage where the interest rate stays the same throughout the entire loan.

The current average rate for a two-year fixed rate mortgage is 4.91%, down from 4.93%.

Positives:

Fixed rates provide some degree of predictability. Because your interest rate is locked in, you know exactly how much you'll have to pay each month.

Negatives:

You could end up paying over the odds for years. If you lock into a long-term mortgage deal of now while rates are high, if they come back down, you would be stuck paying more than the market average until your deal ends

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Personal loans are a form of installment credit. Unlike a credit card, a personal loan delivers a one-time payment of cash to borrowers. Then, borrowers pay back that amount plus interest in regular, monthly installments over the lifetime of the loan, known as its term.

a good rate for you depends on your credit score. For example, if you have excellent credit, a rate below 11 percent would be considered good.

Advantages of personal loans · One lump sum · Fast funding times · No collateral requirement · Lower interest rates · Flexibility and versatility.

like all financial products, personal loans have drawbacks. Some lenders charge high fees, and the monthly payment may be steep if you only qualify for a short repayment term.

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a method of paying for something in which the buyer pays part of the cost immediately and then makes small regular payments until the debt is completely paid. The buyer can use the product, but does not legally own it until all payments are made. this is useful for buying cars. but You'll pay more for whatever it is you're financing through hire purchase. You won't own the asset until you have made the final hire purchase payment.

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variable rate mortgage differs from a fixed rate as the interest rate remains consistent throughout the loan whereas variable rat the interest fluctuates based on market conditions. the current rates of a variable rate mortgage for a five year would be 5.55 percent.

advantages- lower initial rates, flexibility, potential for decreased payments.

disadvantages- payment uncertainty, risk of rising rates, long term costs.

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A personal loan is where a lender gives u a lump sum which you pay back in regular instalments over a period of time and sometimes an interest can be added. Advantages are one lump sum which mean you get your entire loan at once. Lower interest rates and could boost your credit score if used correctly. Disadvantages are if you have poor credit personal loans could come with a higher credit score and there is an over borrowing risk.

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For cars, a Personal Contract Purchase (PCP) is a complicated way to pay for a car. It's like long-term rental, allowing you to use the car until the contract ends. At the end of the contract, you can: return the car.

butthere is a balloon Payment Risk. Unless you have savings earmarked for the balloon payment, you risk losing the car if you can't pay the lump sum at the end

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Variable rate mortgage - Overtime the interest rate can go up or down which means that monthly payments can vary.

How does it differ from a fixed rate - A fixed rate stays at the same rate throughout, whereas a variable rate can change throughout the year.

Advantages - A variable rate mortgages typically start with lower interest rates compared to fixed rate mortgages, which can lead to lower initial monthly payments.

Disadvantages - The interest rate increases. If the interest rates rise, your mortgage payments will also increase, which can make budgeting more difficult.

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mortgage payments are set for the term, even though interest rates may fluctuate during that time.

The Standard Variable Mortgage Rate is 7.00%.

Advantages

The borrower may be able to reduce their total mortgage payments if the rate remains low for a substantial period of time compared to a fixed rate mortgage.

Disadvantages

Variable interest rates can go up to the point where the borrower may have difficulty paying the loan.

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Hire purchase is an agreement where the buyer makes a down payment and pays the balance plus interest in instalments.

Advantages

Improve cash flow.

Fixed repayments.

Lower rates of interest.

Repayment flexibility.

Credit Management.

Disadvantages

Can effect credit score negatively.

higher cost (interest)

Asset liability

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a personal contract purchase (PCP) is a type of car financing option that allows you to drive your vehicle while making lower monthly payments.

advantages- flexibility, lower monthly payments, access to newer cars more frequently.

disadvantages- maybe mileage limits, don't own the car until you make the final payment, potential higher overall cost.

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With a variable rate mortgage, mortgage payments are set for the term, even though interest rates may fluctuate during that time. If interest rates go down, more of the payment is applied to reduce the principal; if rates go up, more of the payment is applied to payment of interest.

Pros of variable rate mortgages can include lower initial payments than a fixed-rate loan, and lower payments if interest rates drop. The downside is that the mortgage payments can increase if interest rates rise.

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Personal contract purchase - A type of car finance agreement which allows you to drive a new vehicle for a set period. usually between 2 to 4 years, while making lower monthly payments compared to traditional car loans.

Advantages - Can be a convenient option for those who want a new car without financial commitment.

Disadvantages - Mileage restrictions. PCP agreements normally come with mileage limits and exceeding these can result in additional charges.

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hire purchase is a type of vehicle financing arrangement where you can buy a car through installment payments over a set period.

advantages- more affordable, once all payments are made you own the car outright, spread the cost of the vehicle over time.

disadvantages- higher overall cost, if you miss payments the lender can repossess the vehicle.

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a variable rate mortgage a type of mortgage in which your interest rate and intern your monthly repayments can go up or down variable rates tracker rates and discounted rates

a variable interest rate loan is a loan were the interest charged on the outstanding balance fluctuates based on an underlying bench mark your index that periodic cliff changes

a fixed interest rate is a loan were the interest rate on the loan remains the same for the life of the loan

advantages lower initial payments than a fixed loan and lower payments if interest payments drops

disadvantages variable interest rates can go up to the point were borrower may have difficulty paying the loan it also makes it harder for a lender to predict future cash flow

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Hire purchase - Type of financing arrangement where you can acquire an asset, like a car, by paying for it in instalments over a set period.

Advantages - Ownership at the end. Once the payments are complete you own the asset outright.

Disadvantages - Higher overall cost. Due to interest and fees you may end up paying more for the asset than its original price.

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a personal loan is a type of unsecured loan that you can borrow from a bank, credit union, or online lender. the interest rates is 12.42%.

advantages- quick access to cash, flexibility in how you use funds, straight forward application process.

disadvantages- interest rates can increase more that secured loans, if you fail to repay it can negatively impact your credit score.

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personal loans are a type of credit that are used in monthly instalments and usually will take a while usually 3-10 years and differs from a mortgage because they are unfixed unlike a mortgage that's bound to a house a personal loan isn't

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A variable rate mortgage is a home loan where the interest rate can change over time based on market conditions whereas a fixed rate mortgage will stay the same throughout the loan term.

advantages

It has lower initial rates than a fixed rate mortgage.

disadvantages

it has a lot of uncertainty as your payments will change unexpectedly

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An advantage of overdraft is that it is flexible, you only borrow what you need at the time which can make it cheaper than a loan.

A disadvantage is that interest rates can be high, making it a costly way to borrow.

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1. a fixed rate mortgage is when your repayments have a interest rate for a period of time

2. for a 2 year fixed rate mortgage is 4.91%

3. disadvantages - inflation risk, can erode the purchasing power of that fixed amount over time, making it relatively more expensive in the future

advantages - stability in payments, your monthly mortgage payment remains the same throughout the life of the loan, which makes budging easier and provides peace of mind.

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Personal Contract Purchase is a flexible plan that allows you to borrow money which you then pay back in monthly instalments.

ADVANTAGES

Low initial payment.

Fixed monthly payments.

You may be able to refinance the Optional Final Payment.

No depreciation concerns if you wish to walk away at the end.

Maintenance and servicing can be included.

Fixed Optional Final Payment when you first take out the contract.

Cost effective.

DISADVANTAGES

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personal contract purchase is a way to borrow to buy a car you pay back the money over every month and at the end of the contract you can chose to return the car, upgrade or make one final payment (optional final payment) to own it.

advantages - an affordable monthly payment plan, don't need top purchase the car

disadvantages - could lose the car if you cant pay the money, don't own the car until you make the final payment

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Personal Loan - An unsecure loan that you can borrow from a bank, credit union or online lender to cover various expenses.

Current interest rate - Can range from 3% to 36%

Advantages - Flexibility. You can use the funds for various purposes like consolidating debt, making home improvements or covering unexpected expenses.

Disadvantages - Higher interest rates. Compared to secured loans, personal loans often come with higher interest rates, especially if you have a lower credit score.

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Advantage of Klarna is that you can buy things that you might not be able to afford at the time and pay it back off later. Disadvantage is they sometimes give your credit information to lenders making it harder to get a loan.

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a klarna is a finance technology company that supports payment solutions known for its "buy now, pay later" service. it offers interests free options, flexible payment plans, easy check out, allows you to purchase items immediately and pay later on.

the credit score changed in June 2022 so they can find out who actually pays on time and other companies can see this too to see if they are reliable.

advantages-help manage cast flow, easy application process.

disadvantages- miss payments may incur late fees or interest charges, can lead to over spending.

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a credit rating score is a number representing your credit worthiness. you can improve this by paying bills on time, reduce credit card balances, keep old accounts open and diversify your credit mix. something bad for your credit score would be late payments, bankruptcies, too many hard inquiries, closed accounts.

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the two types of overdraft is authorized and unauthorized. authorized is a pre-agreed limit set by your bank, this one can range from£1 to £5 per day. unauthorized is when you exceed your account balance without prier arrangements with your bank this can also range from £5 to £35.

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Klarna is a buy now, pay later provider that offers multiple payment plans that can break up the cost of your purchase for zero interest. It also offers monthly payments that may charge interest. You can download the Klarna mobile app to shop online and in stores.

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Hire purchase is an agreement where the buyer makes a down payment and pays the balance plus interest in installments.

ADVANTAGES

Improve cash flow.

Fixed repayments.

Lower rates of interest.

Repayment flexibility.

Credit Management.

Tax Benefits.

Increased Asset Base.

DISADVANTAGES

Asset depreciation. Almost all assets depreciate in value over time. ...

Overall cost. With hire purchase, you may end up paying a higher overall cost than if you bought the equipment outright.

Ongoing fixed payments.

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It is a method of buying goods through making instalment payments over time. its usually used with paying for things like cars. you will be able to use the item but legally you dont own it until it has been fully paid off.

advantages

immediate use, spreads cost, fixed payments

disadvantages

higher total cost, ownership delay, risk of repossession