Borrowing Project .

by Sam Chacon.

Credit .

credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
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simple interest

simple interest is the money you can earn by initially investing some money (the principal).
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Tips of borrowing.

  • work out your budget before you borrow to make sure you can afford the repayments.
  • spend time shopping around, researching what’s on offer and getting advice. You may think it will take too much time if you need a loan quickly but you’ll be paying the price for years to come if you don’t
  • make sure you know the difference between secured and unsecured loans. A secured loan means you can lose your home if you don't keep up the repayments
  • avoid going overdrawn on your bank account without agreement. You'll be charged much less if you agree the overdraft beforehand
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Myths about borrowing money.

Myth 1: All debt is bad.

Myth 2: Leverage is too risky.

Myth 3: Leveraged investing is only for the rich.

Myth 4: Returns have to equal your interest costs

Amortization Schedule

An amortization schedule is a table detailing each periodic payment on an amortizing loan (typically a mortgage), as generated by an amortization calculator.
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Principal

In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time.
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Rate.

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
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Time.

Short-term (usually between one to six months) asset based business loan payable usually in one installment on the maturity date
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simple interest rate.

The simple interest formula allows us to calculate I, which is theinterest earned or charged on a loan.
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The 5 C's

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20/10 Rule

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