Borrowing Money MoneySmart

If you get a credit loan, you purchase something, you are using someone else's money, must pay. ""

From entering the debt Instead, it is much cheaper to save your own money to buy things. However, if you do not need to borrow, there are several pieces of information to understand your loan or credit card here, you want to manage. Check out also published news upcoming news submit a new story groups financial aid.

Different types of credit

"" When you sign up, money has been borrowed. See Also published news upcoming news submit a new story groups best internet business.

  • Reserved until
  • Credit card
  • Store card
  • Mortgage car loans, personal loans and
  • Interest-free information
  • Bank overdraft
  • Payday loans and caching
Loans and interest rates
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You must pay interest to borrow money when - for use of money borrowed the "fees". This is usually the ratio of the amount you borrow.

Please check the interest rate you will be charged at all times. You must repay high interest rates, you more money. This is so you can make a big difference to how much you owe, even if you find interest, are charged monthly, quarterly or yearly.

Get a good deal from Jess: A Case Study

Jess is a 10% interest rate, to borrow the $ 600 per year. Interest is charged at the end of the year. Dan, you can borrow $ 600 a year in interest rate of 5%. Interest is charged on a monthly basis. Dan, but he considered to obtain a better deal after the lapse of years, Jess, you must pay a $ 660 ($ 60 - $ in the $ 600 interest) back. On the other hand, Dan, you must pay a $ 1,078 ($ 478 with $ 600 interest).

You are using a personal loan calculator to find our how much it is when you borrow the money will be charged.

Personal loan calculator


Payday loan

Payday loans can be repaid on your next payday is a short-term loan. These loans are very expensive. They pay the high fees (48% in some cases) high interest rates.

Case Study: Paul gets a payday loan.

Paul is following up his salary had to borrow $ 200. He obtained a payday loan, has been charged $ 40 fee. He could not pay the loan back when you get paid to Paul, was charged interest of 40%. A week later, Paul again when it receives a stipend, he had to repay the $ 320 - loan and interest. Paul is not to use payday loans, you will need to borrow money, trying to find other ways.

Credit card

"" Credit card to buy things that you now pay for them later. They are high fees and charges can become very expensive.

Some tips are as follows, using your credit card here. See Also loans with no credit check.

  • You pay the full monthly rent. If you do not pay the balance of the credit card each month completely, it would take a long time to repay that sum, it will pay a lot of extra interest.
  • Can use your credit card, get cash from the account does not have. See Also capital one credit card . You have to do more with expenses paid. Even if you were a full refund within a month, you must pay extra to bring out the cash yet.
  • You are using a credit card calculator of the Company. Please refer to how to grow your debt.
  • Please read your credit card statement carefully. If you have been charged, please contact your bank or credit union immediately wrong. See Also published news upcoming news submit a new story groups hearing loss reasons. For more information, see complain .
  • Please note that to have a card of the store. Check out also published news upcoming news submit a new story groups computer network. Before you sign up for one of these credit cards, fees and charges will examine how much. They can become much more expensive than other credit cards.

Credit card calculator

Case Study: Gary, pay off your credit card in his 10 years

Gary, you signed up for the offer of credit card he received in the mail. Check out also buckeye check cashing inc. . He went straight to the store, I bought a refrigerator for thousands of dollars. A month later, Gary got the invoice by e-mail. It was only $ 20 minimum monthly repayment, because it is all he has paid. Gary is after almost 10 years had been paid for yet refrigerator. See Also car titles for money . At that time, he paid $ 500 extra for profit.

For more information, please refer to the following credit cards.

Interest-free information

Provides information for those interest-free from time to time, computers, electrical appliances, whitegoods, such as in the big stores. These information, you may not come cheap as they seem.

Tips for using interest-free information:

  • Please check the room rate. Does not imply non-interest-bearing, the fee cost, you will have to pay the fee still ongoing.
  • Pay the contract before the end of the interest-free period. If you do not you'll be charged a very high amount of interest you
Case Study: Jenny, buy an interest-free TV

Jenny is a 12-month interest-free period, I bought a TV for $ 500. She has been charged for $ 20 per month during the interest-free compensation. See Also published news upcoming news submit a new story groups effective teacher training. At the end of the interest-free period, Jenny, because it did not pay to turn off the TV, she launched a 30% interest. Finally, the TV took (the actual costs, fees and interest) $ 900 to Jenny.

For more information, see the information of interest-free .

Than rent, it is better to save your own money is cheap. However, if you make sure that you buy can afford to repay, not borrowed check the budget. For more information, listen to the audio portion of our banks, loans, credit cards .


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August 23, 2011 Last Updated:

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