Risks of Borrowing (Junior Cert Business Studies): Flashcards
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Practise the cards
13 cards from this deck
Definition of debt
Definition of debt
A sum of money that is owed or overdue
Definition of arrears
Definition of arrears
When one or more repayments are late or go unpaid
Legal warning on mortgages in Ireland
Legal warning on mortgages in Ireland
Your home is at risk if you don't keep up payments
Personal circumstances affecting loan repayments
Personal circumstances affecting loan repayments
Job loss, illness, divorce, unexpected expenses
Effect of arrears on credit rating
Effect of arrears on credit rating
Credit rating will be damaged
Serious consequence of arrears
Serious consequence of arrears
You could lose assets like your home or car
Action if struggling with repayments
Action if struggling with repayments
Contact your lender immediately
What MABS stands for
What MABS stands for
Money Advice and Budgeting Service
Type of advice MABS provides
Type of advice MABS provides
Free and confidential
How MABS helps with budgeting
How MABS helps with budgeting
Creates a realistic budget
How MABS helps with lenders
How MABS helps with lenders
Negotiates with lenders on your behalf
Why debt grows over time
Why debt grows over time
Interest continues to build up
Legal requirement for Irish lenders
Legal requirement for Irish lenders
Must provide clear warnings about borrowing risks