econ 1-2 - People borrow money for many different reasons....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
People borrow money for many different reasons. It may be personal, to pay off something, or for a house. There are also many different ways to borrow money. Some of these ways include personal loans, Credit cards, Bank overdrafts, and mortgages. A personal loan is just how it sounds; it is a loan for someone for his or her own personal reasons. To receive a loan you must apply for it and sometime you will need someone to co sign the loan if your credit is not strong enough. There are two types of personal loans; a secure loan and an unsecure loan. A secure loan is where you must put something up for collateral if you cannot pay the loan back in time. In most cases a person’s house is used as collateral. With an unsecure loan you do not have to put anything up for collateral. The interest is usually fixed on this type of loan. Credit cards let you buy the things you need and want now and pay for them when the bill comes later that month. Like a loan you must apply for the credit card. Depending on your
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/17/2008 for the course ECON 002 taught by Professor Mcleod,markpehlivan,ayseozg during the Fall '08 term at Penn State.

Page1 / 2

econ 1-2 - People borrow money for many different reasons....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online