1. Promissory Notes and Loans

2. Promissory Note: Written agreement to pay back money at a given time. Lender and Lendee Promissory Note: Written agreement to pay back money at a given time. Lender and Lendee Collateral Collateral Anything that has value and that can be used to secure the note or ensure that you’ll pay money back Anything that has value and that can be used to secure the note or ensure that you’ll pay money back Usually banks want up to the value of the loan Usually banks want up to the value of the loan Cosigner Cosigner Bank/Person may ask that someone else signs the note with you. They are responsible for loan too Bank/Person may ask that someone else signs the note with you. They are responsible for loan too Needed for people w/ bad credit or have little credit history Needed for people w/ bad credit or have little credit history

3. Promissory Notes and Loans Default Default Failing to make a payment. Hurts your credit rating. Lender could foreclose on loan Failing to make a payment. Hurts your credit rating. Lender could foreclose on loan Missing a Payment Missing a Payment Contact the lender immediately. More than likely you’ll get an extension or deferment for period of time Contact the lender immediately. More than likely you’ll get an extension or deferment for period of time

4. Credit Report?

5. Promissory Notes and Loans Defaulting on a Loan Defaulting on a Loan Lender will request all of the money due. If you can’t pay, items will be repossessed and then sold so they can get money. Lender will request all of the money due. If you can’t pay, items will be repossessed and then sold so they can get money. If they make more than owed, you get the money. If it doesn’t cover, legal action to garnish your wages. If they make more than owed, you get the money. If it doesn’t cover, legal action to garnish your wages.

6. Promissory Notes and Loans Get it in Writing Get it in Writing The most important thing to have if lending or barrowing money. The most important thing to have if lending or barrowing money. State who loans, receives, how much and when to pay back. IF there is interest, it should be noted. State who loans, receives, how much and when to pay back. IF there is interest, it should be noted.

7. Loan Calculators Car, Home, Remodel, etc. Car, Home, Remodel, etc. Car, Home, Remodel, etc. Car, Home, Remodel, etc.