Lending and Debt
Over the past few weeks we have been learning about lending and debt. Today we went over what we did last week and we also learnt some meanings of things.
Here are some meanings:
- Interest rate – The rate at which you are charged every week. This is a percentage of the overdraft balance every week.
- Max overpay limit – The maximum amount of money you are allowed to borrow.
- Weekly service fee – A fee that you regularly pay to the bank for having an overdraft.
- Unarranged overdraft – When you spend more money than you have in your account.
- Arranged Overdraft – When you apply to the bank to borrow more money than is in your bank account.
- Bankruptcy – When you have no money left and cannot pay your debts. In Banqer, this can be initiated by the creditor ( the bank)
- Set-up fee – A one-off charge that is sometimes called an establishment fee.