borrowing

Reasons for borrowing

Not enough money for a needed purchase

Examples of borrowing

Mortgage-for house

Education-college fees

Types of loans

Mid term loan paid back over 1-5 years

Long term loan -paid back over 5➕years

Guarantor

Someone to step in and finish of a loan if original person unable to

Mortgage

Long term loan usually to build/buy a house

Rights of borrowing

Know alr

Know end date

Aware if need initial deposit

Responsibilities of borrowing

Give truthful info

Ensure repayment is meetable

Use money as intended

Moneylenders

An option if you have bad credit history

Interest typically high

Usually for short time periods

Hire purchase

Not owned by consumer until fully paid

Common for expensive items Like cars and furniture

Third party finance company consumers instals payments and pays seller

Leasing

Consumer has use of a product for a time period without owning it

Can be used when abroad or when consumer unable to afford to buy product

Risks of borrowing

Financial institutions have a legal duty to include warnings when offering services