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Flashcards in Borrowing Deck (10):
1

Shirt term loan

Less than one year
Overdraft

2

Medium term

1 to 5 years
Term loan
Personal loan

3

Long term

5 years or more
Mortgage

4

Collateral

Something of value used as security against a loan

5

Guarantor

A person (often a parent) who promises to repay the loan if you do not

6

Deferred payment

Payment in instalments

7

Renting

Regular payments in exchange for the use of something
e.g. video game

8

Leasing

A special form of renting where you make payments for an agreed period

9

Hire Purchase (HP)

Paying in instalments for an agreed period but now owning the goods until the last payment

10

3 ways to pay for something

Cash
Borrow
Credit