Borrowing by Christopher RHEAD https://padlet.com/crhead2/3ssoo996sl1vejcg A introduction into the different types of borrowing. en-us 2023-06-15 08:33:44 UTC 2023-06-15 13:27:12 UTC hello@padlet.com Personal Loan https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624520544 2023-06-15 12:31:23 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624520544 credit card https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624521471 2023-06-15 12:32:39 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624521471 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624521556 2023-06-15 12:32:46 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624521556 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624522626 PAYDAY LOAN]]> 2023-06-15 12:34:08 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624522626 Hire Purchase https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624522691 2023-06-15 12:34:11 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624522691 Issued by financial institutions allowing customers to delay payments for goods and services https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624522770 2023-06-15 12:34:18 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624522770 Mortgage https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624522907 2023-06-15 12:34:30 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624522907 a loan that does not require collateral or security and is offered with minimal documentation. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624523110 2023-06-15 12:34:48 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624523110 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624523184 2023-06-15 12:34:52 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624523184 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624523303 2023-06-15 12:35:02 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624523303 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624523764 defintion 
a relatively small amount of momey lent at a high rate of interest in the agreement that it will be repaid when the borrower receives their next wages]]> 2023-06-15 12:35:43 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624523764 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624523846 2023-06-15 12:35:51 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624523846 example: Balance Transfer Credit CardGive yourself some breathing room with our balance transfer deal for up to 27 months (fees apply). Transfer your other credit card balances so that you make just one monthly payment for everything. Representative 23.9% APR (variable). https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624524111 2023-06-15 12:36:12 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624524111 Benefits: Allows a period of credit that is interest free, e.g. one month. Most cards are widely accepted. Loyalty schemes are often offered e.g. collect points or cash back https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624524759 2023-06-15 12:36:43 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624524759 drawbacks - Interest rates can be higher than alternatives.More eligibility requirements.Fees and penalties can be high.Additional monthly payment.Increased debt load.Higher payments than credit cards.Potential credit damage. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624524807 2023-06-15 12:36:48 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624524807 A hire purchase, also known as an installment plan, is an arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment and repaying the balance of the price of the asset plus interest over a period of time. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624524917 2023-06-15 12:36:56 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624524917 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525055 2023-06-15 12:37:09 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525055 A bank or building society lending money with added interest in exchange for getting the right to take the property if the borrowed money is not fully paid back, e.g. taking out a mortgage on a house. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525214 2023-06-15 12:37:14 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525214 Who might use it? https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525289 Individuals and businesses use mortgages to buy real estate without paying the entire purchase price up front.]]> 2023-06-15 12:37:20 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525289 who would use an overdraft? https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525397  businesses that experience fluctuations in working capital would be likely to use an overdraft ]]> 2023-06-15 12:37:27 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525397 Benefits of Personal Loans https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525500 - No collateral requirement
- Lower interest rates
- Flexibility and versatility
- Extended loan times
- Easier to manage
- One lump sum
- Fast funding times ]]> 2023-06-15 12:37:36 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525500 used by people who work and receive a regular income https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525578 2023-06-15 12:37:42 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525578 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525689 2023-06-15 12:37:51 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624525689 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526220 2023-06-15 12:38:36 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526220 disadvantages: Habit of Overspending. Although credit cards provide you with adequate credit for a long time, you must be prudent when spending the money. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526317 2023-06-15 12:38:44 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526317 If you have a short or non-existent credit history, you may not qualify for a credit card https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526325 2023-06-15 12:38:45 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526325 most people would look to have a personal loan - its used for almost any purpose, including unexpected expenses, large purchases or debt consolidation. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526805 2023-06-15 12:39:31 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526805 High Rate of Interest https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526812 2023-06-15 12:39:32 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526812 Drawbacks https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526968
  • Having debt: Many folks strive to be completely free of debt. ...
  • Paying interest: When paying a mortgage, some of your money is going toward the interest. ...
  • Risk of rate change: If you don't have a fixed-rate mortgage, you risk your loan's interest rate increasing

    • ]]>     2023-06-15 12:39:39 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624526968     Deception https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624527241 2023-06-15 12:39:54 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624527241 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624527407 2023-06-15 12:40:08 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624527407 Hidden Costs https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624527655 2023-06-15 12:40:30 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624527655 Restricted Drawings https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624527928 2023-06-15 12:40:46 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624527928 Minimum Due https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624528222 2023-06-15 12:41:11 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624528222 Benefits - continue to remain the legal owner of the property while using funds from the loan to fulfil needs, mortgage loans are easily approved as they are secured, interest paid on a mortgage loan is less than a personal loan. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624528636 2023-06-15 12:41:45 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624528636 A personal loan is an amount of money you can borrow to use for a variety of purposes. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624528987 2023-06-15 12:42:12 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624528987 Personal loans are loans that can cover a number of personal expenses. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529389 2023-06-15 12:42:39 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529389 You can find personal loans through banks, credit unions, and online lenders. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529669 2023-06-15 12:42:56 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529669 People who would use A hire purchase are ones who might not be able to pay the full amount upfront for the product/item so they opt to pay in installments. Common amongst people 25-34 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529719 2023-06-15 12:43:01 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529719 Example of Personal Loan https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529733 A personal loan might be used when someone is purchasing a new car. The individual may not be able to pay the full price and will have to take a loan out to fund it. ]]> 2023-06-15 12:43:02 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529733 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529937 2023-06-15 12:43:18 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529937 Personal loans can be secured, meaning you need collateral to borrow money, or unsecured, with no collateral needed. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529962 2023-06-15 12:43:20 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624529962 Example https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530246 2023-06-15 12:43:38 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530246 Personal loans can vary greatly when it comes to their interest rates, fees, amounts, and repayment terms. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530250 2023-06-15 12:43:38 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530250 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530484 2023-06-15 12:43:57 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530484 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530489 2023-06-15 12:43:58 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530489 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530528 benefits:
    they have fewwer requirements thsn other loans
    it is an unsecured loan
    easy to acess]]>     2023-06-15 12:44:00 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530528     https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530801 2023-06-15 12:44:23 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530801 you might use a personal loan to cover: Moving expensesDebt consolidationMedical billsWedding expensesHome renovations or repairsFuneral costsVacation costsUnexpected expenses https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530831 2023-06-15 12:44:25 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624530831 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624531500 2023-06-15 12:45:03 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624531500 when looking to get a personal load you need to check for : Interest rate Fees Repayment terms Borrowing limits (minimum and maximum)Collateral requirements https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624532476 2023-06-15 12:45:58 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624532476 cons: https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624532626
  • The loan is secured against the vehicle. With a hire purchase agreement, you're in a fixed contract
  • It will cost more overall
  • Monthly payments are based on credit rating
  • It can be expensive for short term agreements
  • Missing or late payments could affect your credit score



    • ]]>     2023-06-15 12:46:09 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624532626     Do Personal Loans Have Fees? A personal loan can include fees such as origination fees, which are added to the total cost of the loan. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624533658 2023-06-15 12:47:31 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624533658 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624533947 2023-06-15 12:47:56 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624533947 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624534025 2023-06-15 12:48:03 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624534025 https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624534048 2023-06-15 12:48:05 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624534048 Benefit of personal loan - a good way to consolidate and pay off costly credit card debt. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624534865 2023-06-15 12:49:13 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624534865 Benefits of a Hire Purchase include: the interest rate is fixed, option to pay off the loan early, you will the product at the end of the agreement, allows you to spread the cost over a fixed period of time, can access newer products without paying in full. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624535408 2023-06-15 12:49:56 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624535408 drawbacks: https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624536144 they are expensive
    its easy to get trapped in a cycle of debt 
    they have access to your bank account

    ]]>     2023-06-15 12:50:38 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624536144     https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624536262 An overdraft lets you borrow extra money through your current account. For example, if you have no money left in your account and you spend £30, your balance would be -£30. This means you're using an overdraft. An overdraft is a form of debt and is repayable on demand.]]> 2023-06-15 12:50:47 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624536262 example: https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624537536 PM loans
    MoneyBoat
    PayDay UK]]>     2023-06-15 12:52:26 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624537536     In finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment.[1] Unsecured debts are sometimes called signature debt or personal loans.[2] These differ from secured debt such as a mortgage, which is backed by a piece of real estate.In the event of the bankruptcy of the borrower, the unsecured creditors have a general claim on the assets of the borrower after the specific pledged assets have been assigned to the secured creditors. The unsecured creditors usually realize a smaller proportion of their claims than the secured creditors.In some legal systems, unsecured creditors who are also indebted to the insolvent debtor are able (and, in some jurisdictions, required) to set off the debts, so actually putting the unsecured creditor with a matured liability to the debtor in a pre-preferential position.Under risk-based pricing, creditors tend to demand extremely high interest rates as a condition of extending unsecured debt. The maximum loss on a properly collateralized loan is the difference between the fair market value of the collateral and the outstanding debt. Thus, in the context of secured lending, the use of collateral reduces the size of the "bet" taken by the creditor on the debtor's creditworthiness. Without collateral, the creditor stands to lose the entire sum outstanding at the point of default and must boost the interest rate to price in that risk. Hence, although sufficiently high interest rates are considered usurious, unsecured loans would not be made at all without them.Unsecured loans are often sought out if additional capital is required although existing (but not necessarily all) assets have been pledged to secure prior debt. Secured lenders more often than not include language in the loan agreement that prevents debtor from assuming additional secured loans or pledging any assets to a creditor.Examples of unsecured debtTypes of unsecured debtCorporate unsecured debt – Since this type of debt assumes a greater amount of risk, corporations that have lower bond ratings (such as BBB) are classified as unsecured debt due to their higher default risk.[3]Personal loan – A personal loan is a loan which can be taken to meet unspecified financial needs. Today personal loan segment has diverted into many specialised loans. It can be taken for various purpose such as a wedding, traveling, paying education fee, medical emergencies or any undefined reason etc.[1] The interest paid on a personal loan is in most cases higher than that payable on secured loans.[4]Consumer durable loan – In the retail sector or e-commerce, a growing number of merchants have embraced point-of-sale financing. It is commonly called consumer finance. On the spot no-cost EMI option is given. Even though, as per the rules and regulations of specific countries, there can never be no cost EMI option. Any lending institute is bound to take interest in some form or the other from you.Student loans – This common type of debt is considered unsecured in many countries, because the loan is usually taken by a student (usually from a graduate or undergraduate level) or the student's parent / legal guardian to pay tuition fees for the student. The borrower is usually expected to pay back the loan after completion of the course and securing a job. Due to the obvious uncertainty of the student to be able to find a job after completion of the course (or at times, even finish it), lenders have very strict criteria for this product. The loan is only given after the lender assesses the student's academic record, the type of course the student is wishing to pursue and the quality of the university / institute where the student has secured admission for the aforementioned course, in addition to other standard criteria such as the guarantor's credit history, bank account statements, assets and holdings, etc. However, in rare cases, the borrower (usually a parent / legal guardian) of the student can pledge assets against the loan, thereby making it a secured loan. In recent times, a lot of salaried professionals also take loans to complete part time courses or certifications. In such cases however, the loan is not considered to be a student loan – it is simply categorized as a general personal loan.National differencesUnited StatesFailure to make a payment on an unsecured debt may ultimately result in reporting the delinquent debt to a credit reporting agency or legal action. However, a nongovernmental unsecured creditor cannot seize any of your assets without a court judgment in the U.S.A creditor must file a complaint in state or federal court before a judgment can be made for or against the borrower.MalaysiaIn Malaysia, there are personal loans for the private sector and for the government sector. The personal loan interest rate for the private sector is always higher than the government sector because it is of lower risk for the bank to lend to the government sector. The government will pay the salary of the civil servants through a payroll system known as the Biro Angkasa and the bank will deduct the monthly installment of the loan from the civil servant's salary through this system, before the salary is even released. An example of these loans are cooperative loans.Interest rates for personal loans in Malaysia are influenced by either one of these factors: loan amount, loan tenure and income of the applicant. In some cases, the bank will take 2 or even 3 of these factors to decide on the appropriate interest rate to be applied to the personal loan. In 2013, the Malaysian Central Bank introduces a new maximum loan tenure of 10 years for personal loan (previous maximum loan tenure was 25 years).[5]See alsoHigh-yield debtGuarantor loanMedical debtMerchant cash advancePeer-to-peer lendingTerm depositCredit card debtReferences "UNSECURED LOAN | meaning in the Cambridge English Dictionary". dictionary.cambridge.org. Retrieved 2020-08-09. Kagan, Julia. "Signature Loan". Investopedia. Retrieved 2020-08-09. Staff, Investopedia (2005-11-03). "Unsecured Debt". Investopedia. Retrieved 2018-07-26. Dubey, Navneet. "How to apply for a personal loan?". The Economic Times. "Measures to Further Promote a Sound and Sustainable Household Sector". BNM.gov.my.vteConsumer debtKey concepts Annual percentage rate (APR)Effective annual rate (EAR)Credit historyUnsecured Credit card debt cash advanceOverdraftPayday loanPersonal loan / Signature loanMoneylenderMicrocreditSecured Mortgage loan / Home equity loan (credit line)RemortgageCar title loan / Logbook loanTax refund anticipation loanPawnbrokerManagement ConsolidationCredit counseling / Management plan / SettlementPersonal bankruptcyForeclosure / RepossessionPersonal financeAlternative financial servicesFinancial literacyCategories: Fixed incomeManagement theoryThis page was last edited on 21 April 2023, at 04:49 (UTC).Text is available under the Creative Commons Attribution-ShareAlike License 4.0; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624538917 2023-06-15 12:54:03 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624538917 Common examples of Hire Purchase include cars and tvs. Such as a fiat 500 on a car website such as cazoo https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624539054 2023-06-15 12:54:16 UTC https://padlet.com/crhead2/3ssoo996sl1vejcg/wish/2624539054