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Personal Finance - Coggle Diagram
Personal Finance
Methods of payment
Credit Card
a credit card is where you are borrowing money from the bank instead of it coming straight out your current account and then having to pay back that borrowed money by the end of the month which is where interest gets added
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disadvantages
high interest payments (if you don't clear your balance out by the end of the month, you'll have to pay interest on that money)
Debit Card
this is where the money you spend comes straight out of your account and can have an overdraft (18+) to borrow money but you will need to get accepted by the bank for one of those
advantages
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disadvantages
you can't use them to borrow money until you get accepted by the bank for an overdraft and even then the cost for using one can be as high as 40%
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Current Accounts
A current account is a bank or building society account that is typically assessed on a day to day basis, from which money may be withdrawn without notice.
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