Dealing with money - Do you have enough money?
4 important questions on Dealing with money - Do you have enough money?
What are the caracteristics from borrowing money?
You purchasing power is temporarily increased
You can buy more
What happens if you have to redeem the loan?
You have to pay interest.
What are the motives of borrowing?
- To compensate for a temporary lack of money
- To be able to consume now
- To have enough money when an unexpected expense comes up
- To make a large purchase, like buying a house
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