Repayment
Categories: Credit
You borrowed money. Now you have to repay the principal you borrowed. Plus interest. You make monthly installments for a year in 12 equal component repayments. That's it.
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Finance: What are borrowers?0 Views
Finance allah shmoop what are borrowers Well they're people who
need lenders And no not the bagels And yeah we
beat that one Death borrowers The bunny tio by stuff
you know like homes cars computers chain saws you know
to deal with defective computers and cars and adam or
granular level borrowers carry credit cards which borrow money or
used to borrow money from the bank who issued that
credit card to buy piercings at the mall groceries sports
equipment or rhinestone studded iphone accessories And then the borrowers
either pay off that loan or credit at the end
of the month or they get charged Big interest borrowers
are common among the wealthy he invested and the wall
street sophisticate crowd A brokerages margin account allows clients to
borrow against themselves That is given client has a hundred
grand in coca cola stock in their account Well they
can usually borrow up to about half that amount or
fifty grand against it Fifty fifty thousand is the absolute
max that they can borrow without having to sell some
of the borrowed money The moment ko stock declines Why
Because while the government doesn't want people to be too
leveraged And that's how the great depression stock market crashed
in its warnings Yes we don't go there again all
right More commonly a brokerage accounts cash would be used
for that last twelve grand needed to buy the car
usually way cheaper interest rate and deal terms When a
buyer is borrowing from herself to buy that prius rather
than borrowing money from the kindly loving generous auto dealer
the notion is that the borrower tries to quickly pay
off the margin debt on that account and go back
to normal life with no death Short stock is another
borrow example on the street If it investor wants to
make the bet that it given security will go down
in value They can borrow money from a broker and
sell that security and then pray that it declines in
value at which time the short seller will buy back
that stock and deliver it to the brokerage to unwind
their short position and pay back the money they borrowed
If the stock doesn't decline and goes the other way
while things can get ugly as the short seller not
only have to then buy back stock at higher prices
but must also continue to pay the usually very high
interest rate on the bar Oh there as well So
there are all kinds of ways to go about borrowing
but it's pretty tough to get through this world without
ever borrowing in one form or another The guy who
said neither a borrower nor a lender be yeah he 00:02:21.888 --> [endTime] does not work in high finance