Chapter 6 In-Class Notes. Background on Personal Loans Sources of Loans Chartered banks, finance companies, credit unions, family and friends Contents.

Slides:



Advertisements
Similar presentations
Chapter 7: Planned Borrowing. Objectives Discuss the elements of the planned use of credit. Establish your own debt limit. Understand the language of.
Advertisements

Home Buying Process Financial Options. Objectives Define the Four “Cs” of the Loan Process Determine How Much You Can Afford for a House Calculate Front-End/Back-End.
Introduction to Business and Marketing Chapter 26.2.
1 (of 26) FIN 200: Personal Finance Topic 10-Personal Loans Lawrence Schrenk, Instructor.
The Importance of Credit Brought to you by Work.
Copyright ©2004 Pearson Education, Inc. All rights reserved. Chapter 8 Personal Loans.
Mortgage Loans Fixed Income Securities. Outline  What is a mortgage?  Major Originators  Alternative Mortgage Instruments  Prepayments and their impacts.
CHAPTER 7: USING CONSUMER LOANS
Chapter 5 Section 5.4 Amortized Loans. An amortized loan is a type of investment (for the loaner) in which the amount of the loan, plus the interest is.
Copyright ©2004 Pearson Education, Inc. All rights reserved. Chapter 8 Personal Loans.
1. What is Credit and What is Debt? 2. Using Credit: The Rewards & Risks 3. Four Types of Debt 4. The Cost of Using Credit 5. Running the Numbers.
Chapter 7 Personal Loans 7-1. Chapter Objectives Provide a background on personal loans Calculate the payment and the real cost of borrowing on personal.
Loan To Own 1. 2 Introduction Instructor and student introductions Module overview.
Chapter 11 Section 2 - Slide 1 Copyright © 2009 Pearson Education, Inc. AND.
Consumer Math p Definitions  Down payment – part of the price paid at the time of purchase  Financed – borrowed  Mortgage – a property loan.
Copyright ©2004 Pearson Education, Inc. All rights reserved. Chapter 9 Purchasing and Financing a Home.
Borrowing Basics 1. 2 Purpose Borrowing Basics: Describes how credit works and the types of credit available. Helps you determine if you are ready to.
CHAPTER 7: USING CONSUMER LOANS
Introduction to Business and Marketing. OBJECTIVES  Identify the sources of credit  Understand the types of credit.
Credit: Helpful or Hurtful. Fact or Fiction Q. Using credit can lead to serious problems. A. True.
PART 2: MANAGING YOUR MONEY Chapter 7 Using Consumer Loans: The Role of Planned Borrowing.
Chapter 9 Personal Loans. Copyright ©2014 Pearson Education, Inc. All rights reserved.9-2 Chapter Objectives Introduce personal loans Outline the types.
 a type of credit that is typically started at the time of purchase for a specific asset  Common for purchases of $1,000 or more  Ex. car, motorcycle.
Loan To Own 1. 2 Purpose Loan to Own provides general information on installment loans, including: Car loans Home equity loans.
Chapter 7 In-Class Notes. Selecting a Home and How Much Can You Afford? Decide on the type of home you would like: House or condominium Consider the input.
Chapter 8 Purchasing and Financing a Home Copyright © 2012 Pearson Canada Inc. Edited by Laura Lamb.
Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 9-1 Objectives Provide a background on personal loans Outline the types of interest rates.
Chapter 4 Study Guide.
Chapter 1 Overview What is: Finance? Financial Management? Financial Intermediary Function (the cycle of money)?
Chapter 6 Own a Home or Car.
Section 1.1, Slide 1 Copyright © 2014, 2010, 2007 Pearson Education, Inc. Section 8.5, Slide 1 Consumer Mathematics The Mathematics of Everyday Life 8.
Accounting for Long-Term Debt Acct 2210 Chp 10 & Appendix “F” (pg ) McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights.
PART 2: MANAGING YOUR MONEY Chapter 7 Using Consumer Loans: The Role of Planned Borrowing.
1. Learning Outcomes Chapter 16 Describe the characteristics of the various sources of short-term credit, including Accruals trade credit bank loans commercial.
AP Economics Mr. Bernstein Sources of Consumer Credit June 2015.
Credit What YOU need to know!. What is Credit? Credit is borrowing money now to make an immediate purchase and promising to repay it later.
Learning Objective # 2 Determine the effective cost of borrowing by considering the quoted rate, the number of compounding periods, the timing of interest.
Chapter 31 The Cost of Credit. Interest Calculations - Determining Factors  Interest Rates – The percentage that is applied to your debt expressed as.
Section 6.2 Notes. Can you afford a loan?  First way to tell  Second way to tell.
Copyright ©2004 Pearson Education, Inc. All rights reserved.8-1 What Is Consumer Borrowing? Obtaining funds from a lender under specific loan provisions.
Chapter 22: Borrowing Models Lesson Plan Simple Interest Compound Interest Conventional Loans Annuities 1 Mathematical Literacy in Today’s World, 8th ed.
Rent vs. Buy The Finances of Housing and Real Estate.
Accounting for Long-Term Debt Chapter Ten McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Unit 5: Personal Finance Services of the Bank  Place to store your money safely – an Account.
Stock Market Analysis and Personal Finance Mr. Bernstein Sources of Consumer Credit, pp April 1, 2015.
 What are advantages of credit  What are disadvantages of credit.
7-1 Copyright  2002 by Harcourt, Inc. All rights reserved. CHAPTER 7: USING CONSUMER LOANS Clip Art  2001 Microsoft Corporation. All rights reserved.
Credit 3 C’s of Credit. Character – Will you repay the Debt?  Have you used credit before?  Do you pay your bills on time?  Do you have a good credit.
Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest.
Copyright © 2011 Pearson Education, Inc. Managing Your Money.
The Three C’s of Credit Objectives: – Students will be able to describe the “Three C’s of Credit (Capacity, character, and collateral) and factors used.
Credit Credit: borrowing money to pay for something now while promising to repay it later. Lender: the person loaning the money Borrower: receives the.
Copyright © 2008 Pearson Education Canada 8-1 Chapter 8 Simple Interest Applications Contemporary Business Mathematics With Canadian Applications Eighth.
Chapter 4 Going into debt.
Mortgages. A mortgage is a loan that is secured by property. Mortgages are large loans, and the money is generally borrowed over a large amount of time.
Slide Copyright © 2009 Pearson Education, Inc. AND Active Learning Lecture Slides For use with Classroom Response Systems Chapter 11 Consumer Mathematics.
Responsibilities and Costs of Credit
Loans. Loan An amount of money borrowed and repaid with interest Interest – Money paid for the right to borrow money  Fixed rate – rate that stays the.
Write down one costly item that you would buy right now if you had enough credit. What steps can you take now to start building and maintaining a strong.
© 2008 Thomson South-Western CHAPTER 7 USING CONSUMER LOANS.
Chapter 5 Consumer Credit: Advantages, Disadvantages, Sources, and Costs McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights.
Personal Finance Personal Loans
CHAPTER 16 Mortgages.
Personal Finance Home Finance
PFIN 7 Using Consumer Loans 5 BILLINGSLEY/ GITMAN/ JOEHNK/
Buying a House with a Mortgage
Personal Loans.
Personal Finance: Credit and Interest,
Unit 5: Personal Finance
Average Credit Card Debt Average Minimum Payment
Presentation transcript:

Chapter 6 In-Class Notes

Background on Personal Loans Sources of Loans Chartered banks, finance companies, credit unions, family and friends Contents of a Loan Contract Amount of the loan Interest rate Loan repayment schedule Maturity or term Security Collateral Payday Loans Short-term loans at very high interest rates 6-2Copyright © 2009 Pearson Education Canada

Interest Rates on Personal Loans Annual Percentage Rate: measures the finance expenses, including interest and all other expenses, on a loan annually. Simple Interest: calculates interest payable as a percentage of the existing loan amount (or principal). Add-on Interest: calculates monthly loan payments after adding together interest and loan principal. 6-3Copyright © 2009 Pearson Education Canada

Home Equity Loan Allows homeowners to borrow against the equity in their homes Home Equity = Market Value of Home – Mortgage Balance Maximum Credit Limit = (Market Value of Home x 75%) – Mortgage Balance Risks Borrower may never get around to paying down the principal of the loan. Interest rates may rise to a point where the borrower is no longer able to afford the minimum interest-only payments. 6-4Copyright © 2009 Pearson Education Canada

Car Loans and Purchase versus Lease Decision Selecting a car means considering: Personal preference, price, condition, insurance, resale value, repair expenses, and financing rate Negotiate the price Make sound financing decisions Decide whether to buy or lease a car 6-5Copyright © 2009 Pearson Education Canada

Student Loans Obtained through the Canada Student Loans Program Set limit on how much students can borrow each year, based on assessed need Full-time students Loan repayment begins after education is completed Part-time students Must make interest payments while studying Student loans must still be paid back if you declare bankruptcy within 10 years of ceasing to be a student 6-6Copyright © 2009 Pearson Education Canada

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.