How_Money_Works_-_The_Facts_Visually_Explained

202 203 PERSONAL FINANCE Pensions and retirement Annuities HOW TO CONSOLIDATE PENSIONS Most people will have paid into different ...

Debt This is an amount of money borrowed by one party from other parties. Borrowing is the way in which corporations and individ ...

204 205 PERSONAL FINANCE Debt £1.496 trillion the debt owed by people in the UK Statement Big Bank CREDIT £4,000 £4,000 £260 £3, ...

Why people use debt How it works Countries, companies, and individuals all use debt in order to function. Debt can be a useful m ...

206 207 PERSONAL FINANCE Debt INTEREST AND BANKRUPTCY Interest This is the cost paid to borrow money. It is expressed as a perce ...

Interest and compound interest The snowball effect If a snowball is rolled down a hill, it gets bigger and bigger as it gathers ...

208 209 PERSONAL FINANCE Debt How it works Interest is the cost of borrowing money, for example from a bank, and it is calculate ...

Loans How it works Loans allow individuals to borrow a lump sum to use in the short term, which they then repay in instalments a ...

210 211 PERSONAL FINANCE Debt Loan agreement Abank REPAYMENT The Borrower will repay the amount of this note in 60 equal contin ...

Mortgages Types of mortgage Different countries have different types of mortgage, and different rules governing their issue. The ...

212 213 PERSONAL FINANCE Debt Interest-only mortgage Reverse annuity mortgage ❯❯Loan-to-value ratio (LTV) Percentage of a proper ...

MORTGAGES Mortgage rates Banks offer a range of mortgages with different interest rates, each of which offers a different ratio ...

214 215 PERSONAL FINANCE Debt SUBPRIME MORTGAGES AND CREDIT CRUNCH Mortgage deal 2 Tracker mortgages ❯❯The mortgage rate is vari ...

Credit unions Not for profit Credit unions are similar to mutual building societies in that they are owned by their members (cus ...

216 217 PERSONAL FINANCE Debt ❯❯Loan rates and terms may not be as competitive as those of market- leading products, but they ar ...

Credit cards Minimum repayments Unlike loan and mortgage borrowers, credit card users can choose how much over and above the pre ...

218 219 PERSONAL FINANCE Debt 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TIME (YEARS) REVOLVING CREDIT A credit card is a form of ...

£ £ Traditional finance Conventional money unique to a country or region. Also called fiat currency, from the Latin word fiat me ...

220 221 PERSONAL FINANCE Money in the digital age TIMELINE OF DIGITAL MONEY TIME (YEARS) Digital currency Money that can be trad ...

T r a d it io nal^ curre n c y How it works There are two main features of a cryptocurrency. The first is that it exists only in ...