"Let Me Hold Sumn"

The bank LOVES when you ask them for a large sum of money. They probably throw a party in the back & everything. It's more than important to pay those thousands of dollars rather than your cousin who gave you $20 last week. Here's loans explained!

1. All loans are alike in some ways.

2. You borrow an amount of money, called the principal, for a set amount of time, called the term, at a fixed or variable interest rate.

3. Most loans are installment loans, which require regular payments, usually every month, until the full loan is paid back with interest.

4. Loans can be secured or unsecured. For example, car loans and mortgages are secured loans. Your promise to repay the loan is secured by the car or house you're buying. If you fail to make your payments, the lender can seize the car or house to recoup the money it lent you.

5. Unsecured loans are backed by only your promise to repay, which is why they normally come with higher interest rates.