BANKS AND LOANSMr. Geib and Mr. Fitz-Patrick

12th Grade Economics

ARE BANKERS YOUR FRIENDS?!?

INTEREST RATES AND CREDIT• Paying all cash!• Credit scores

• Good credit• Medium credit• Bad credit

• Late payments, defaults; bankruptcy

• Term of loan • Interest rate• Prime lending rate• Amortization schedule

Auto rate calculator

This is an example of a deal made for someone with bad credit: a $16,000 Nissan Versa, minus a $1,000 bonus

cash incentive, financed for 72 months with $1,000 down. The interest rate

would be around 17.9 percent, which would bring the monthly payment to

about $354. At the end of the six years, you would have paid $25,485

for that Versa.

PAYDAY LOAN SERVICES• Almost 30% is the CA

limit on auto loan interest rates!

• Ethical?

• Payday loan services?

“USURY”?Banks and banking are central to “capitalism” and the accruing of money towards investment and economic growth. But ethical reservation revolving around the lending of money are ancient!

CREDIT CARDS• “Credit Card” versus

“Debit card.”• Credit Cards• American Express

– Visa, Mastercard, and Discover

– Interest Rates, Rewards

• College students and credit cards?

• Middle Class safety net?• National credit card

debt?

MODERN AMERICWANTS YOU TO BE IN DEBT!

• There used to a be a strong moral prohibition on debt – NO MORE!

• The idea of being a “WAGE SLAVE”!