Borrowing Money

1. Many people borrow money at some time. For example, very few people can pay cash for the home or car of their choice. Also, many people use credit cards or personal loans to purchase items such as furniture and electrical appliances. In order to have the use of the goods immediately, people borrow money to pay for them. They then make regular repayments over a period of time and pay an additional charge called:

Fees

Interest

Account charges

Fares

2. Wise consumers should always select the most appropriate type of loan for what they want to buy. This will require them to compare the advantages and disadvantages of different types of loans. These types of loans include:

Personal loans and credit cards

Mortgages and personal loans

Bank overdraft and credit cards

All of the above