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UNIT 2: Topic 11 (11.1 The decision to borrow (11.1.1 Is it necessary?…
UNIT 2: Topic 11
11.1 The decision to borrow
11.1.1 Is it necessary?
Before borrowing you must see if there any other options
Could you save up?
Rearrange budgets?
Cash flow forecast
11.1.2 Informed decisions
Look at different deals
Use comparison websites
11.1.3 Consolidating other debts
It may be sensible to rearrange debts
You must make sure you are capable of managing it
It may be tempting to continue spending on credit cards this way.
11.2 Calculating the cost of borrowing
11.2.2 Different costs
Setting up fees
Early repayment fees
Interest
11.2.3 using tools
Online calculators
11.4 Effect of debt problems
11.4.1 Personal issues
May go into default, this is when you can't make payments.
11.4.2 Legal concequenes
County court judgment
Individual voluntary agreements
Bankrupcy
Debt relief order