TYPE ANSWERS 1. Be able to identify your responsibilities as a debtor, as well as creditors’ responsibilities to...

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Finance

TYPE ANSWERS
1.
Be able to identify your responsibilities as a debtor, as wellas creditors’ responsibilities to you
Be able to identify methods to increase your credit score
Differentiate between simple and compound interest; know how tocalculate each (debtor perspective)
Understand what Annual Percentage Rate (APR) is, and how it iscalculated

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Responsibility of a Debtor Debtor is the one who has borrowed or availed a credit from a Creditor or a Lender So the debtor has certain responsibilities towards the creditor i Debtors are legally responsible for paying the dues they owe and must promptly pay the dues interest payment or principal repayment or both as when required to do so ii Should maintain complete transparency about their financial condition to the creditor in fact they must periodically inform the creditor regarding the same iii Must promptly contact the creditor if facing financial difficulties and try to work out an alternative repayment plan iv Debtor must not sell the assets which have been pledged as collateral with the creditor v Debtor must not claim that the same asset has been used as collateral to obtain several other loans vi Debtor must not look for securing additional borrowing without the consent of the present creditor vii Debtor must insure and maintain the assets used as See Answer

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TYPE ANSWERS1.Be able to identify your responsibilities as a debtor, as wellas creditors’ responsibilities to youBe able to identify methods to increase your credit scoreDifferentiate between simple and compound interest; know how tocalculate each (debtor perspective)Understand what Annual Percentage Rate (APR) is, and how it iscalculated