mr. page. the amount of money available to be borrowed by an individual

What is Credit & Debt? Mr. Page

Upload: bridget-cooper

Post on 16-Dec-2015

212 views

Category:

Documents

0 download

Report

Download

Embed Size (px):

TRANSCRIPT

What is Credit & Debt?

Mr. Page

Credit

The amount of money available to be borrowed by an individual.

Debt

An amount of money borrowed by one party from another.

Page 4: Mr. Page. The amount of money available to be borrowed by an individual

Advantages of Credit

1. Can greatly expand your purchasing potential

2. Raises your standard of living 3. Emergency funds 4. Convenient 5. Safer

Page 5: Mr. Page. The amount of money available to be borrowed by an individual

Advantages of Credit

Can greatly expand your purchasing potential

Page 6: Mr. Page. The amount of money available to be borrowed by an individual

Advantages of Credit

Can enhance your standard of living

Page 7: Mr. Page. The amount of money available to be borrowed by an individual

Advantages of Credit

Emergency product (not to be a replacement for emergency savings!)

Page 8: Mr. Page. The amount of money available to be borrowed by an individual

Advantages of Credit

Convenient

Page 9: Mr. Page. The amount of money available to be borrowed by an individual

Advantages of Credit

Safer

Page 10: Mr. Page. The amount of money available to be borrowed by an individual

Disadvantages of Credit & Debt

1. It MAY cost more then cash purchases.

2. Finance charges (total dollar amount of all interest and fees)

3. You tie up future income (debt/income ratio)

4. Can lead to overspending 5. Tie up future freedom!

Page 11: Mr. Page. The amount of money available to be borrowed by an individual

Disadvantages of Credit & Debt It may cost more

then cash purchases.

Page 12: Mr. Page. The amount of money available to be borrowed by an individual

Disadvantages of Credit & Debt Finance charges

(total dollar amount of all interest and fees)

Page 13: Mr. Page. The amount of money available to be borrowed by an individual

Disadvantages of Credit & Debt Tie up future

freedom and future income (Debt to income ratio)

Page 14: Mr. Page. The amount of money available to be borrowed by an individual

Disadvantages of Credit & Debt Can lead to

overspending

Page 15: Mr. Page. The amount of money available to be borrowed by an individual

5 C’s of Credit

Character: a person’s honesty and reliability determined by their history of repaying bills on time. (reflected in your credit score)

Capital: an evaluation of a person’s net worth (assets-liabilities)

Capacity: the income a person has available to repay the loan determined by job longevity/income and having few other loans

Collateral: property which can be seized if a person does not repay the loan

Conditions: refers to the general state of the economy

Page 16: Mr. Page. The amount of money available to be borrowed by an individual

5 C’s of Credit

Character: a person’s honesty and reliability determined by their history of repaying bills on time. Reflected in your

credit score.

Page 17: Mr. Page. The amount of money available to be borrowed by an individual

5 C’s of Credit

Capital: an evaluation of a person’s net worth Assets-liabilities

Page 18: Mr. Page. The amount of money available to be borrowed by an individual

5 C’s of Credit

Capacity: the income a person has available to repay the loan determined by job longevity/income and having few other loans

Page 19: Mr. Page. The amount of money available to be borrowed by an individual

5 C’s of Credit

Collateral: property which can be seized if a person does not repay the loan

Page 20: Mr. Page. The amount of money available to be borrowed by an individual

5 C’s of Credit

Conditions: refers to the general state of the economy

Total interest, initial amount borrowed or lent Rate of interest, Total amount payable

PART 5 Macroeconomic Policy - Cornell University money supply is positively related to both the non-borrowed reserves NBR and to the level of borrowed reserves, BR, from the Fed. Discount

Define money supply Constituents of money supply RBIs ...rapodar.ac.in/pdf/elearn/Moneysupply.pdf · Money Supply Amount of money in circulation Stock of money held by public Stock

The reputation one has built in his or her dependability in regard to paying back borrowed money

Credit and Debt What is Credit? Someone lends you money 1. The original amount borrowed is called the ___ Principal

The Concept of Interest By McKay Clarke. Interest Definition: (Finance) a charge for borrowed money that is generally a percentage of the amount borrowed

Compoun…4.7 Compound Interest Interest - the cost of using money total amount borrowed Principal - Rate of Interest - the amount charged for the use of the principal for a giv period

MCFCU SUMMER LOAN NOTE - Michigan Columbus Federal …7.99% (The cost of your credit as a yearly rate.) Amount Financed: $ 1,000.00 (Amount borrowed) TOTAL FINANCE CHARGE:* $ 43.93

Budgeting basics. Gross income The amount of money BEFORE TAXES!!!!

Make Unlimited Amount of Money in Card Games

Microwave Ovens © PDST Home Economics. Choosing a microwave cooker Cost / amount of money available /value for money Size of family - amount of use Quality

GLOSSARYymiclassroom.com/byf/BYF_Bk3_Student_glossary.pdf · repaid in equal payments at fixed intervals, usually monthly Loan: an amount of money borrowed and repaid with interest

2Srussell.hosted.civiclive.com/UserFiles/Servers/Server_3708999/File... · LOAN Name of bank or recognized lending institution Amount borrowed ~$~-----INCOME Total amount of all

Play Poker And Make A Great Amount Of Money

Compound Interest, Future Value, and Present Value When money is borrowed, the amount borrowed is known as the loan principal. –For the borrower, interest

Borrowing Money. Borrowing Get a loan Repay that amount PLUS interest Amount repaid depends on: Rate of interest ○ High = more money spent ○ Low

Perkins/HPSL Exit Counseling and Intervie · Principal - initial amount of money borrowed Accrued interest –amount of interest that has been added to your loan. Interest accrues

Marston · 2020-02-27 · money borrowed or to be borrowed and grants from government departments; the final figure thus obtained is the amount upon which the duty is payable, the

USE OF BOND PROCEEDS AND BORROWED MONEY - …sfsd.mt.gov/.../3_CitiesTowns/word/CT08-LongTermDeb… · Web viewExcept as otherwise provided by law, money borrowed by a local government

Problems Farmers borrowed money to pay for new equipment, crop prices dropped, couldn’t pay their loans Farmers wanted the government to put more money

In this chapter, you will learn to: · Web viewSimple interest is paid only on the original amount borrowed. When the money is loaned out, the person who borrows the money generally

baldwinprepschool.files.wordpress.com...cosigner collateral to let someone borrow something, such as money; money that is borrowed a business or organization that loans money to people

Still Building a Better Denver with Borrowed Money

Money Supply and other notions about Money! Amount of money in circulation is constantly changing. The amount depends on how much money is desired by

Bell Work1/22/15 What type of correlation is it? 4. Amount of money spent and the money saved. 5. A person’s height and the money they make. 6. Amount

Simple & Compound Interest. Simple Interest -Interest paid only on an initial amount deposited or the amount borrowed -The amount is called the PRINCIPLE

Depreciation Conclusion. Taxable Income + Gross Income - Depreciation Allowance - Interest on Borrowed Money - Other Tax Exemptions = Taxable Income

Supply of Money Interest Rate the annual rate at which payment is made for the use of money (or borrowed funds) a percentage of the borrowed amount the

Asif Ranginwala - NYU La · Web view“Interest” – amount which one has contracted to pay for the use of borrowed money compensation for the use of forebearance of money equivalent

4.01 FORMS OF COMPENSATION / PAY. MONETARY COMPENSATION Wage - The amount of money paid for a specified quantity of labor. Salary - A set amount of money

Unit 4 Credit and Debt What is Credit? Someone lends you money 1. The original amount borrowed is called the ___ Principal

Obsolete cars can earn you good amount of money

Actual Amount Of Money Toward Mortgage sparc

Farmers wanted an increase in the money supply , the amount of money in the national economy

Student Loans And Credit: An Overview · 12/14/2015 · Installment Loans Revolving Lines of Credit Specified amount of money is borrowed Agreement by lender (e.g. bank, credit union)