In this chapter, students will be able to understand: Know when to use consumer loans and be able to differentiate between the major types; identify the various sources of consumer loans; choose the best loans by comparing finance charges, maturity, collateral, and other loan terms; describe the features of, and calculate the finance charges on, single-payment loans; evaluate the benefits of an installment loan; determine the costs of installment loans and analyze whether it is better to pay cash or to take out a loan. | PFINN 4 Using Consumer Loans 7 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Know when to use consumer loans and be able to differentiate between the major types Identify the various sources of consumer loans Choose the best loans by comparing finance charges, maturity, collateral, and other loan terms Describe the features of, and calculate the finance charges on, single-payment loans LEARNING OBJECTIVES PFIN4 | CH7 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Evaluate the benefits of an installment loan 6 Determine the costs of installment loans and | PFINN 4 Using Consumer Loans 7 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Know when to use consumer loans and be able to differentiate between the major types Identify the various sources of consumer loans Choose the best loans by comparing finance charges, maturity, collateral, and other loan terms Describe the features of, and calculate the finance charges on, single-payment loans LEARNING OBJECTIVES PFIN4 | CH7 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Evaluate the benefits of an installment loan 6 Determine the costs of installment loans and analyze whether it is better to pay cash or to take out a loan LEARNING OBJECTIVES (continued) PFIN4 | CH7 Consumer Loans Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Formally negotiated contracts that specify the borrowing terms and repayment Types Auto loans Loans for other durable goods Education loans Personal loans Consolidation loans PFIN4 | CH7 Exhibit Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH7 Federal Government Student Loan Programs at Glance Source: and , accessed August 2014. Consumer Loans Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4
