- 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 Introduction01:07
- MoneySENSE Core Financial Capabilities Framework01:33
- Why Do People Borrow?01:47
- Notes: Why Do People Borrow?00:51
- Types Of Loans02:29
- Notes: Types Of Loans00:49
- Features Of Term Loans01:16
- Term Loans - Flat Rate and Monthly Rest03:36
- Term Loans - Flat Rate Discount and Fixed Principal Repayment01:19
- Term Loans - Fees and Charges02:18
- Notes: Term Loans02:47
- Features Of Revolving Credit03:19
- Notes: Modes of Repayment and Features Of Revolving Credit01:07
- Notes: Effective Interest Rates2 pages
- Excel Demo - Flat Rate Interest04:30
- Excel Demo - Flat Rate Discount02:54
- Excel Demo - Fixed Principal Repayment02:47
- Excel Demo - Effective Interest Rate Calculator04:46
- Case Study 1 - How Credit Card Interest Is Computed05:31
- Case Study 2 - How Long For Your Debt To Double?01:11
- Case Study 3 - What If You Only Paid Back The Minimum Sum?03:45
- Using Credit Cards Wisely04:07
- Are you a credit guru?5 questions
- Additional Resources01:40
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 Institute for Financial Literacy is a collaboration between MoneySense and Singapore Polytechnic Enterprise.
Our financial education courses cover basic money management, financial planning and investment know-how.