Borrowing

This is a form of borrowing were you draw more money than the account holds. It is very flexible once a limit is achieved.

This form of borrowing is very useful to borrow large amounts of money, eg for home improvements. You will have a schedule to pay the money back.

Which of these forms of borrowing is usually used to buy property.

• Personal Loan

• Mortgage

• Payday Loan

• Credit card

This type of borrowing is often used for small, emergency amounts, such as a boiler breaking. The money is usually paid back the next pay day.

A major problem of payday loans is that there are high levels of what?

• Money

• Interest charged

• Breaks on paying the money back

What are the problems of an overdraft?

• You can borrow large amounts.

• Very high levels of interest and charges.

• The money is not available right away, even when agreed with the bank.

• You can not easily get access to the money.

Credit cards are a method were you can delay p............. for goods and services. You have to pay back the money with interest.

IVA stands for what?

• Independent voluntary agreement

• Individual voluntary arrangement

• Individual voluntary application

How can you apply for an IVA?

• You can apply for it yourself

• Go to an insolvency practitioner eg a lawyer or an accountant

• You go to citizens advice

• You apply via the government website

With an IVA, the insolvency practitioner, will work out a r................................ schedule, that you can afford.