This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Personal cash flow statement Loan contract: a contract that specifies the terms of a loan, as agreed to by the borrower and the lender Amount of the loan Interest rate Background on Personal Loans (contd) Loan repayment schedule Amortize: to repay the principal of a loan through a series of equal payments Each payment includes part of the principal and part of the interest Maturity: the life or duration of the loan Longer maturity equals lower payments, but more interest is paid over the life of the loan Background on Personal Loans (contd) Collateral: assets of a borrower that back a secured loan in the event that the borrower defaults Secured loan: a loan that is backed or secured by collateral Unsecured loan: a loan that is not backed by collateral Payday loan: a short-term loan provided in advance of a paycheck Cosigning is sometimes required if credit history is weak...
View Full Document