Risks and Benefits of Borrowing

In your groups, you will each select one of the following methods of borrowing to
research. Answer each of the questions so that your group members will be able to
rank these methods because they have the necessary information to make this
decision.

Describe this Is there a cost What is the What is the

method of to borrowing RISK? Benefit
borrowing money this
way?

Ex. -borrowing an -depends on -If the loan is -convenient

agreed upon the agreement not repaid this because of
Friends or amount of could have a more flexible
Family money from -some friends negative effect repayment
friends and or family on a personal terms
family and members may relationship
working charge interest
together to
decide when
and how the
money will be
repaid

Personal Loan Loaning from a You will be in Interest getting Is a fast one
company only debt and to high and you time thing to
one time interest will go not being able get money
though up each month to get the
money
Credit Card Taking out You could go Bank might Fast easy way
money from a in to debt to the make you of getting
credit card bank broke and money
make you go in
to debt

OSAP A type of loan debt Debt could get Helps you and
to you your family out
in times of
need

Federal Loaning from In debt to the Debt Coud help with

Student Loan school federal student student costs
loan of living and
food and such
Line of Credit An emergency In debt to bank debt Can be tapped
stream of or family in to at any
money. time

Based on the information your group has gathered, rank these methods of borrowing
from best to worst.

Family and friends

#1

Line of credit
#2

OSAP
#3

FSL
#4

Personal loan
#5
 Credit card
#6