Lesson 11. Credit - 3 | Уроки математики и физики для школьников и родителей

пятница, 13 июля 2018 г.

Lesson 11. Credit - 3

PERSONAL LOANS

If you do not have enough money to buy an item, you might buy on credit. There are different ways of doing this such as hire purchase credit cards, store cards, bank overdrafts and personal loans.

Make sure you know the true cost of buying on credit.

The section deals with personal loans.

Personal loans.

– An amount of money borrowed from a bank of another organisation. The loan is paid back in fixed amounts usually each month.

– The fixed amount must be paid each month. You cannot pay a little less one month then a little more the following month.

– The interest rate is usually a lot less than the interest rate on a credit card.

Payment protection.

People are advised to take out insurance with their loan so that loan repayments will be made if people become ill unemployed or have an accident. Payment protection increases the cost of a loan.

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