Good Loan | Bad Loan

What is interest?

• When you like someone

• The extra money you pay back someone for a loan

• Money you charge for an item that someone is particularly keen on

How much interest are you charged on a student loan?

• 0%

• 1.5%

• 5%

When do you have to repay a Student Loan?

• As soon as you get a job

• When you start earning over a certain amount

• When you can afford to pay 12% of your earnings

What should you ask yourself before taking out a loan?

• Is it the cheapest deal?

• Should I save and wait until I have the money?

• How long will it take to pay it back?

What is a mortgage?

• An agreement between a person and a lender e.g. a bank over property.

• Money that buys a house

• Interest rates that apply to house sales and overseas buyers

What is the average deposit lenders will ask for when applying for a mortgage?

• 5%

• 20%

• 10-15%

What is the biggest benefit of taking out a mortgage?

• You don't have to pay rent

• You will have something that can be used as security when getting other loans

• Once it is paid off you will own something of high value (an asset)

When buying a car the best place to get a loan is with...

• The bank

• A finance company

• The car dealer

What is the average interest rate from a finance company?

• 15%

• 17-27%

• 12-20%

When is the best time to buy a new home?

• When interest rates are very low

• When you have children

• When you have saved enough money for the deposit