The opportunity to spend money is everywhere. There is no shortage of places that will take your cash. In fact, to keep the money flowing out of your wallet, banks and merchants continually come up with easier ways for you to spend it.
But when it comes to borrowing money, suddenly the cash pipeline doesn’t operate so smoothly. Money becomes a more complex issue with documents and terminology that practically require you to have https://slickcashloan.com both an MBA and Law degree to fully understand.
Before you get dazed by the paperwork and lost in the legalese of loan products, here is a quick lesson on loans.
1) The Basics
When you get a loan, you are borrowing money with a promise to pay back the original amount (principal) plus an extra amount as a fee (interest) for the privilege of borrowing. The amount you pay in interest is normally a percentage of the loan amount — the interest rate.
Example: If you borrow $100 with an interest rate of 10%, you will pay back $110. That consists of the $100 principal plus $10 interest.
2) Loan Categories
From a broad perspective, loans fall under one of two categories: a) Installment loans and b) Revolving Credit loans.