BORROWING

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WHAT YOU NEED TO KNOW ABOUT BORROWING

  • Credit-an entry recording a sum received, listed on the right-hand side or column of an account

  • Simple Interest -is a quick method of calculating the interest charge on a loan

  • Rate -that usually meets the short- and long- term financing need of the private sector

  • 20-Amount the you should borrow

  • 10-Your monthly payments should be less than 10% of your monthly net income

Advantages and Disadvantages of borrowing

Disadvantage

  • Ongoing debt


Advantage

  • Low interest rate