Types of Borrowing in the UK

Which of the following is typically used for everyday purchases and allows you to borrow up to a certain limit, with interest charged on unpaid balances?

• Personal Loan

• Credit Card

• Mortgage

• Overdraft

What type of loan involves borrowing a lump sum and repaying it with interest over a fixed period, often used for larger purchases like a car?

• Payday Loan

• Credit Card

• Personal Loan

• Store Card

Which form of borrowing is specifically designed to be paid back within a short period, usually with very high interest rates?

• Credit Card

• Payday Loan

• Mortgage

• Personal Loan

What type of borrowing allows you to withdraw more money than you have in your bank account, typically with high interest if not repaid quickly?

• Personal Loan

• Overdraft

• Credit Card

• Payday Loan

Which of the following is a secured loan typically used to purchase property, with the property itself as collateral?

• Personal Loan

• Payday Loan

• Mortgage

• Credit Card

What type of credit is often offered by retailers and can only be used to make purchases at the issuing store?

• Credit Card

• Store Card

• Overdraft

• Payday Loan

Which of these borrowing options often requires the borrower to pay interest on the entire amount borrowed, even if they don't use it all?

• Credit Card

• Overdraft

• Personal Loan

• Payday Loan

Which form of borrowing involves taking a loan that is usually paid back over many years, with the property being repossessed if repayments are not made?

• Credit Card

• Mortgage

• Store Card

• Overdraft

Which borrowing option allows you to avoid interest if you pay your balance in full each month?

• Credit Card

• Personal Loan

• Mortgage

• Payday Loan

Which of the following is generally considered a poor choice due to very high interest rates and the risk of falling into a debt cycle?

• payday loan

• credit card

• mortgage

• store card