Question

1. A loan is usually repaid in _( Equal OR Unequal )____ payments over a set period of time.

2. Credit cards allow ( One-time OR Repeated )___  use of credit as long as regular _( Monthly OR Annual )_______ payments are made.

3. Your personal financial success depends on your ability to make the sacrifices necessary to ___( Earn OR Spend )___   less than you _( Earn OR Spend )___________ .This means that you should use credit wisely, use credit only when necessary, try to obtain credit with _( High OR Low )____________  interest rates, make payments on time, and try to repay debts as quickly as possible.

Answer 1

1)A loan is usually repaid in EQUAL payments over a set PERIOD of time. The amount of the loan is repaid in EQUAL payments which could be monthly or yearly depending upon the terms.

2) Credit card allows REPEATED use of credit as long as regular MONTHLY payments are made. In case of credit card certain limits are set by the bank which allows the person to use credit card upto that limit once the credit has been used the person is required to pay the used credit amout to bank and such payment is made MONTHLY once such payment is made the person can use the credit again.

3) Your personal financial success depends on your ability to make the sacrifices necessary to SPEND less than you EARN .This means that you should use Credit wisely, use credit only when necessary, try to obtain credit with LOW interest rates, make payments on time, and try to repay debts as quickly as possible.

If u will spend less then you earn then in such case there will be savings which can be termed as financial success and therefore the credit available should be used as and when necessary.