Borrowing & Types of Loans

Why do people borrow money?

• If they don't have enough savings to purchase goods and services

• To purchase a home

• To travel

• All of the above

Where can you borrow money from?

• Small businesses

• Banks, finance companies & credit unions

• Church

• My next door neighbor

True or false: When you borrow money, you need to make regular repayments over an agreed time frame.

• True

• False

True or false: It's completely free to borrow money.

• True

• False

Credit cards tend to have ______ interest rates than other forms of credit.

• higher

• lower

• the same

With credit cards, you are charged ____ on all outstanding transactions if you don't pay your full balance each _____.

What can personal loans be used for to purchase? Give 3 examples

Home loan interest rates tend to be _____ than personal loans.

• higher

• lower

• the same

True or false: the bank can repossess your home if you do not repay your mortgage to the bank.

• True

• False