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Mary and Michael were exploring options to fund their daughter’s college education without depleting their savings.  Their financial advisor suggested they consider borrowing against the cash value of their life insurance policy.  The policy allowed them to lend against its accumulated value, offering the flexibility of no set repayment date and no penalty for delaying repayment.  They were reassured by the fact that the outstanding loan amount would simply be deducted from the policy’s benefit if either of them passed away or if the policy matured before the loan was repaid. This option seemed appealing as it provided access to funds without the pressure of a strict repayment schedule, while also ensuring the loan wouldn’t become a burden for their family in the future. Which loan is that?

For Mary and Michael, who are willing to trade a full range of services for lower fees, lower loan rates, and higher satisfaction, what kind of financial institution would you recommend?

Parents or family members may provide the most inexpensive loans to offer financial support.

Which of the following strategies can help minimize borrowing costs by reducing the lender’s risk?

What costs need to be covered even if someone filles for bankruptcy?

—– helps us comparing different savings options at different institutions.

The more frequently the compounding occurs, the higher your rate of return.

John received a phone call from a debt collector regarding a debt he believes he does not owe. He needs to understand the proper procedure for disputing the debt and requesting verification to protect his credit standing and avoid unwarranted collection activities. How many days does John have to send a written request to the debt collector for verification of the alleged debt? 

Checking accounts can be checkless

Mary is reviewing her credit card statement and notices some details that she wants to understand better. Her statement shows an APR of 15%, which translates to a monthly interest rate of 1.75%. Her bank calculates the payment based on previous balance method. Her previous balance was $500, and she made a payment of $350 during the billing cycle. She’s curious to know how much she could have saved if the adjusted balance method was used instead.