Borrowing Basics

issue of money, goods or services to an individual or entity with the expectation of future payments

trusted institutions where money is kept secure

process of borrowing money from an individual or investor without a bank's consent

amount of money charged by a bank to borrow money

short-term, high cost loan typically for $500 or less and due on the next payday or when income is received

valuable asset the borrower offers to lender for securement of the loan provided

maximum amount of being loaned to the borrower by the creditor

determines a series of fixed or installment payments a borrower must repay over a determined period of time

right to keep possession property of another until a debt owed by the person is discharged

loan which is issued and supported by a borrower's reliability, rather than value of an asset

provides a line of credit form a lending institution which can be accessed with a card, has a maximum limit (credit limit) which can be spent and requires monthly repayments

draws money directly from the consumer's checking account when a purchase is made

document or spreadsheet outlining an individual's financial position at a given point of time

report which provides a list of assets and debts owed

number given to an individual which indicates to the lender their ability to repay a loan