Money, tax and benefits

What is a mortgage?

A mortgage is a loan that you take out to buy a property. Most banks and building societies offer mortgages, as well as specialist mortgage companies. If you change the lenders, but do not move home it is designated as the 'remortgage. "

Choosing a mortgage - where to start

You can get a mortgage directly from the lender (banks, construction companies and mortgage lenders specialist), or you can use a mortgage broker. You can buy based on the "information" or just get advice and recommendation on a mortgage that meets your needs.

What about loans

A loan is a type of debt. All material things can be lent; this article, however, focuses exclusively on lending money. Like all debt instruments, a loan involves the redistribution of financial assets over time, between the lender and the borrower.

The borrower initially receives an amount of money from the borrower, which reimburses them, most often, but not always in regular instalments, to the lender. The service is typically provided at a cost, referred to as interest on the debt. A borrower may be subject to certain restrictions loan known as covenants under the terms of the loan.

Acting as a provider of loans is one of the main tasks for financial institutions. For other institutions, the debt was issued contracts such as bonds is a typical source of funding. The bank loans and credit are a way to increase the money supply.

Legally, a loan contract is a promise of a debtor to repay a sum of money in exchange for the promise of a creditor to provide another sum of money.

What about insurance?

Insurance is a precaution against a possible undesirable results: in life and in business, it is a way to manage risk and keep things moving.

We use an insurance policy to protect against the risk of loss, most often financial. When we buy insurance, we transfer our exposure to another person in exchange for a payment or premium. Then, if we incur a loss, insurance puts us in a situation of pre-application (reinstatement).

And if you think about it, nothing happens without insurance! We were unable to start businesses or drive cars, houses or even travel anywhere without it, because the potential risks may be too great. The insurance gives us peace of mind and security that we need to operate.

It works because the insurance companies come together a large number of people who feel exposed to all the same working conditions possible. The company knows that, in one year, the total premiums collected by the group of people to cover the cost of claims made by the unfortunate few who actually suffer a loss.

What is the debt?

A debt is when someone you need money. Debts get bigger every week if you are also responsible "interest". Interest is a supplement on the original debt.

How does it work?

Remember Norman's Stein borrowed bike in exchange for a CD? She planned to buy the CD from the wages of his paper round. But Yasmin has forgotten that if his bicycle has a flat tire, it can not turn paper!

Norman Stein offers to rent his bike for a week so that it can continue to turn paper. However, the rent he is charging half his salary. He also said that, for every week that passes when Yasmin has not repaid the debt, it needs to buy an extra CD, as a fine or "interest".

So, Yasmin is jammed. She is only half his usual wages, and this is not enough to get his bike fixed or buy the CD to be Norman. And now, it has another CD Norman! Each week, the debt will grow increasingly important until there's no way, it will never be able to earn enough money to repay.

This is an example of the debt.

What is the Credit Cards?

A credit card is a payment system the name of the little plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove the money from the user account after each transaction. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid to the seller. It is also different from a debit card (even if the name is sometimes used by the public to describe credit cards), which requires that the balance be paid in full each month.