FIN111 Lecture Notes - Lecture 13: Unsecured Debt, Market Timing, 2011 Wisconsin Act 10
Document Summary
Indicate good financial standing with external parties: reduce costs of holding cash, reduce record keeping. Disadvantages: likelihood of overspending, reduction in quality of lifestyle if misused, adverse legal outcomes (court action, bankruptcy) Over 13 million credit card accounts existed. 20-50 _______: >80% incidence of debt rises with income. One-time loans for a specific purpose pay back in a specified period of time in payments of equal amounts. (mortgage, automobile, and installment loans and for electronics) appliances furniture: open-end. Use as needed until line of credit max reached (credit cards, department store cards, home equity loans) Students have a choice of paying education costs upfront and achieving a 20% discount or accruing a help debt. Help debt is indexed by the rate of inflation. Payments are automatically deducted through the tax system once a certain level of income is achieved: personal loans. Provided for either short or long term. For both small or large amounts of funds.
