Intro to Borrowing
Repaying a Loan
OK. So that’s principal and interest. What about the repayment schedule?
The repayment schedule is the length of time you have to pay off a loan. The lender typically calculates the total amount of money you have to pay back—which means the principal and the interest added together—and then creates a schedule of equal monthly payments.
Which of the following loans does NOT have a required payoff date?
Student loan
Credit card
Home mortgage
Car loan
Which of the following is NOT a potential consequence of falling behind on a loan?
Repossession
Higher Taxes
Lower credit scores
Penalty charges