By Munpreet Marbay

Money Management

Forms of Borrowing

This form of borrowing is usually to buy a property which can be repaid over 25 years or even shorter periods of time.

An Overdraft allows you spend more than what you have in your account.

A short term loan which will cover the person until their next pay day, but comes with high interest rates.

This allows you to purchase many goods and services. Also at the end of each month a monthly bank statement telling you how much you owe.

This allows an individual to borrow a sum of money, the maximum amount allowed to be borrowed £25,000.