Zusammenfassung der Ressource
1.8 CONTINUED
- Credit cards are a good way of short term
borrowing If balance is repaid every
month - less cash required in person.
- notice accounts are not suitable for emergency funds as the
saver will have to pay a penalty if they withdraw without
giving notice before the maturity date.
- these are more useful for long term savings for
example for saving to buy a house, holiday or a
wedding
- for borrowers to maintain sustainability they
should regularly monitor and keep aware of both
the total monthly repayments being taken from
their account as well as their borrowing
- mortgages have lower interest rates due to them
having much longer repayment periods which is
usually 25 years.
- lenders can take more risks with mortgages as they are secured
on the property. repossession can happen if the monthly
repayments are not made.
- credit cards should not be used to repau debts.
when a orrower reaches their credit limit they
cannot borrow anymore and interest can
increase by a lot. this is a lot higher on credit
cards than other borrowing products
- without appropriate insurance, events such as a car
crash or a serious illness or redundancy or a house fire
can all have damaging impacts on an individuals
finances.
- payday loan lenders have been accused of encouraging people
to take out more and more loands or to roll the debt over to the
next month.
- payday loans are covered by the consumer credit acts of 1974 and 2006.