AAEC 2104 Lecture Notes - Lecture 7: New Math, Prepayment Of Loan, Disposable And Discretionary Income
8 Oct 2016
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What is credit: credit is when you buy something today, with the commitment of paying off your debt in the future, consumer credit b. i. Any non-mortgage credit purchases: open or revolving credit c. i. Borrow up to your credit limit c. ii. c. iii. Variable payback minimum payment to full amount. Examples of credit: consumer credit: auto loan, student loans, vacation loans, etc, open revolving credit b. i. Operating lines of credit (ag & business) b. iii. 1. Credit cards a: gives the holder the ability to borrow funds to purchase goods with, credit cards charge interest when funds are borrowed, normally used for short term financing, has several advantages and disadvantages. Simple rules to keep in mind: alex"s rule of 3 a. i. Better yet get on parent"s credit card (but really do this if you can): don"t spend money if you cant pay it back period! b. i.
