ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Student loan for college, House loan (mortgage)
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Borrowing money from a bank to go on vacation
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Borrowing money from a bank to pay off another loan
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Using credit card to buy a new television
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Detailed explanation-1: -A subsidized loan is your best option. With these loans, the federal government pays the interest charges for you while you’re in college.
Detailed explanation-2: -Mortgages. Type of loan: Mortgages are installment loans, which means you pay them back in a set number of payments (installments) over an agreed-upon term (usually 15 or 30 years).
Detailed explanation-3: -A mortgage or student loan may be considered good debt, because it can benefit your long-term financial health. Bad debt is money borrowed to purchase rapidly depreciating assets or assets for consumption. Bad debt can include high levels of credit card debt, which can hurt your credit score.
Detailed explanation-4: -Student loan debt. Home mortgage debt. Small business debt. Auto loan debt. Credit card debt. Payday loans. Borrowing to invest. Predatory/High interest loans.