Risks of online financial lending
This lesson explores the risk of online financial lending.
Risks of online financial lending
This lesson explores the risk of online financial lending.
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Lesson details
Key learning points
- Online lending types (e.g. payday loans; credit cards and bank loans (no signature needed)
- Safe lending online (e.g. avoiding high levels of debt and associated anxieties)
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This content is made available by Oak National Academy Limited and its partners and licensed under Oak’s terms & conditions (Collection 1), except where otherwise stated.
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5 Questions
Q1.
You are surfing the web when you see an advert. It says that you can earn £10,000 a month and can choose your own hours. The only thing is you have to pay £500 to start. Is this a scam?
No.
Possibly.
Unlikely.
Q2.
To work out a budget, you need to add up all your income and then remove what?
Your bills.
Your savings.
Your tax.
Q3.
Which of the following is not a source of income?
Benefits.
Interest on savings.
Wages.
Q4.
Which of these is a benefit of saving some of your income regularly?
All of the above
It helps to prepare for your retirement.
You will have money to cover the cost of any emergencies.
Q5.
Janine has £300 income per week. Her rent is £150, her bills £50, her food costs £70 and her weekly night out costs £50. Which of these needs to be cut back?
Her bills.
Her food.
Her rent.
5 Questions
Q1.
If we need a loan then we have to pay back more than we borrow. A loan of £10,000 over five years would typically cost us how much extra money?
About £1,000.
About £5,000.
About £500.
Q2.
Debt is bad and saving is good. If you owe money which of these is the best option?
All of the above.
Start saving so that you can pay off the debt.
Take out a loan so that you can pay off your debt.
Q3.
If your essential monthly expenditure is £800, what will your disposable income be if your monthly hours, paid at £10.50 an hour, drop from 120 to 80?
£120.
£240.
£460.
Q4.
Where would be the best place to keep your savings?
In a safe.
Under a floorboard.
Under the mattress.
Q5.
Why must you be careful when you take out a personal loan?
The money may belong to a loan shark.
You might use the money to fund a car purchase.