Management and Organizational Studies 2277A/B Lecture Notes - Lecture 5: Debit Card, Contingency Plan, Prime Rate

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

Consumer loan: on time loan that the borrower pays back in a specified period, with predetermined payment schedule. Revolving credit: line of credit, loans made on continuous basis and borrower billed periodically for at least partial payment. Credit limit: dollar amount that lender makes available to borrower. Interest linked with lender"s prime rate: repay minimum stated or more, secured with assets, withdraw with debit card, cheques. Home equity loan: based on current market value of home, less amount still owing on mortgage, can borrow up to %85 of equity, usually set up as revolving line of credit. Interest is tax deductible if being used for investments. Car loans (type of consumer loan: can be financed at bank, or with dealer (more incentives, lower interest rates) Leasing: closed-end lease: can buy vehicle at end or return to company, open-end lease: responsible for residual value of vehicle at lease end, vehicle owned by leasing company, you pay maintenance, possible mileage restrictions.