- Internet access
- Computer of Smart Phone
- Basic knowledge of spreadsheets
- Details of your own personal loans
Many people borrow money at certain points in their lives, usually when their savings are not enough to pay for “big-ticket” items such as a HDB flat or a car. In such cases, borrowing money to buy important items like a home may be necessary.
Borrowing is also a major responsibility as too much debt can easily get us in trouble. The number of persons seeking counselling for debt issues is already increasing every year, and credit card debt in Singapore is one of the fastest growing forms of debt which has grown at an average rate of 11.5% a year (Credit Bureau Report 2011).
We will first look at reasons why people borrow money. Then, we will consider various types of loans, their features and associated costs.
- Secured Loans
- Unsecured Loans
- Term Loans
- Revolving Credit
There are also several Excel demonstrations on the calculation of interest rates for the various types of loans.
Learn about these various types of loans in order to better manage your spending and debt.
We will cover some broad categories of loans namely term and revolving credit. We will also study how to derive the actual interest payable mathematically. This will help us choose the type of loans suitable for our needs.
Do get your own personal loan details ready.
- working adults
- anyone interested in the topic of loans and personal finance
- Understanding Loans Introduction
- MoneySENSE Core Financial Capabilities Framework
- Why Do People Borrow?
- Notes: Why Do People Borrow?
- Types Of Loans
- Notes: Types Of Loans
- Features Of Term Loans
- Term Loans - Flat Rate and Monthly Rest
- Term Loans - Flat Rate Discount and Fixed Principal Repayment
- Term Loans - Fees and Charges
- Notes: Term Loans
- Features Of Revolving Credit
- Notes: Modes of Repayment and Features Of Revolving Credit
- Notes: Effective Interest Rates
- Excel Demo - Flat Rate Interest
- Excel Demo - Flat Rate Discount
- Excel Demo - Fixed Principal Repayment
- Excel Demo - Effective Interest Rate Calculator
- Case Study 1 - How Credit Card Interest Is Computed
- Case Study 2 - How Long For Your Debt To Double?
- Case Study 3 - What If You Only Paid Back The Minimum Sum?
- Using Credit Cards Wisely
- Are you a credit guru?
- Additional Resources
Peggy Chan, Financial Literacy Trainer, Institute for Financial Literacy
Peggy has 8 years of experience in the financial services industry, helping clients understand their financial needs, objectives and risk tolerance as well as reviewing company policies and procedures to ensure compliance. She was also an adjunct lecturer with a Polytechnic, teaching insurance and retirement planning subjects.
Prior to joining the financial services sector, Peggy was working in the information technology sector for 13 years, first in a government agency and subsequently served as a Senior Systems Analyst in an international bank.
She is a Certified Financial Planner, which is a professional certification specific to retirement planning and wealth accumulation in addition to overall financial planning.
Peggy has a Masters of Science, majoring in Network Management. She also holds other industry certification in M5, M8, M8A, M9 and HI.
The MoneySENSE-Singapore Polytechnic Institute for Financial Literacy is a collaboration between MoneySENSE, the national financial education programme in Singapore and Singapore Polytechnic.
MoneySENSE is spearheaded by the public-sector Financial Education Steering Committee which comprises representatives from the Ministry of Health, Ministry of Social and Family Development, Ministry of Education, Ministry of Manpower, Central Provident Fund Board, Monetary Authority of Singapore, National Library Board and People’s Association.
Our financial education courses cover basic money management, financial planning and investment know-how.