Thats Life! Buy Now, Pay Later?

There are two steps to this project. Please read the directions carefully and complete each step as indicated. Both parts should be uploaded to your website!! Step One: Answer the following questions on credit. . !hat is the difference between a credit card and a debit card "i.e., the difference between debit or credit#? $ou mi%ht ha&e to do some research. The difference between a credit card and a debit card is where the money from them is comin%. ' credit card is when you %et credit for your purchase, meanin%, you are not actually payin% for it at that moment. Those credits will add up at the end of the month and you will e&entually ha&e to pay for e&erythin% in the lon% run. The debit card howe&er, will ta(e money from your sa&in%s account. )eanin% that your purchase will be paid for and done with the moment you swipe your card. $ou do not need to pay anythin% bac( when you are usin% a debit card. *. !hat is a credit history? !hy would it be problematic if you abuse credit when youre a youn% adult? +redit history is a ne%ati&e report of an indi&iduals or a companies past when it comes to borrowin% or repayin% money. ' credit history %i&es information about late fees and ban(ruptcy of an indi&idual indi&idual. ,f you abuse credit when you are a youn% adult, you will ha&e poor credit history in your future. This could effect an indi&iduals freedom to ta(e out loans, or borrow money from a ban(. -. !hat is a credit report? !ho issues a credit report anyway? !hat is a credit report and how is this credit report determined? .urin% your inter&iew with an adult, you mi%ht wish to consider as(in% a /uestion about credit and what his0her credit score is. ' credit report a report that has information about an indi&iduals credit. ,t has payment history, and it has the status of all of your credit accounts. This (eeps record if you are payin% on time and how much credit worthiness you ha&e. $our credit report is determined by how loyal you are to a ban(. ,f you are not payin% bills on time, it will show in your credit report or score, meanin% you ha&e bad credit, which effects your credit worthiness. 1. !hat is a late fee? ,n what ways can late fees be administered? Besides the hit to your wallet "i.e., the late fee#, why is it bad to be late on your payments? ' late fee is a char%e that is added to your credit account if you are not payin% your minimum balance on time. Late fees are usually administered if one is payin% their minimum balance. ,t is bad to be late on your payment because it will effect your credit score, which effects your credit worthiness. 2. )any of you mi%ht be ta(in% out a student loan in the future. !hat is the difference between a subsidi3ed student loan and an unsubsidi3ed student loan? !hat does it mean when a payment is deferred? ,ma%ine youre a full4time colle%e student who is not wor(in%. !ould you rather ha&e a subsidi3ed or an unsubsidi3ed loan and why? ' subsidi3ed and unsubsidi3ed loans are loans from the federal %o&ernment that helps under%ratuate students with finacial needs pay for their colle%e. The difference between then is, subsidi3ed loans ha&e a 5 month %race period which allow you 5 months after %raduation to not pay your loans bac(. 'n unsubsidi3ed loan does not ha&e that 5 month %race period. ,f you do not start payin% off that loan, you will recei&e interest on that loan. .eferment is when the payment of your loans are temporarily

delayed. ,f , was a full4time colle%e student who is not wor(in%, , would rather ha&e a subsidi3ed loan. ,n that case, , will ha&e the 5 month %race period to settle down and find a stable job before , ha&e to worry about loan payments. 6. .o a little research. !hat is the current interest rate bein% offered for a 7ubsidi3ed 8ederal 7tafford Loan? Be sure to include your source. The current interest rates for new 8ederal 7tafford Loans in *9 -4*9 1 are -.:5; for under%raduate students and 2.1 ; for %raduate and professional students. http<00www.staffordloan.com0stafford4loan4info0interest4rates.php Step Two: ,nter&iew three people who are usin% credit= one person new to credit, one person in your parents a%e %roup and one person in your %randparents a%e %roup. 's( them their opinion of credit and the impact it has made on their li&es. 's( them if they intend to chan%e anythin% about their future and credit. 'lso as( them how the economy has affected their use of credit. >sin% this information, create a &ideo usin% i)o&ie, )o&ie )a(er, etc. and upload it to your website under a new subpa%e for +redit. Please ma(e sure that the final product is &isually pleasin% and can easily be seen, heard and understood.