The Issues of Credit

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1. Introduction

This report has been compiled at the request of Katarzyna Grzesiak, and is to be submitted 22 April 2014. It analyses the issues of credit and debt amongst young people. The report details what credit is and the different types of credit and the causes of debt amongst young people. Moreover here are two figures unemployment rate.

2. The information shown in this report was gathered from the following sources:
 http://www.cleardebts.co.uk/causes_falling_debt.html
 http://www.poverty.org.uk/35/index.shtml


3.1 Credit

It is debtor's ability and intention to repay. Each person who use credit they have with financial organizations, businesses, and individuals to get loans and they use the loans to buy goods and services to improve service in a business. Each person is typically controlled, how much money would people allowed to borrow, for what purpose, and for how long. The interest rates will be paid back in a period of time.

3.2 Common types of credit
Loans allow borrowing some money that must be repaid with interest. This may gain lend for a specific reason, such as pay college fees, finance a new car and buy or refurbishing a home. May be taking a debt consolidation loan, that combines all current debts from many creditors into a single reduced-interest payment plan. It might also get a credit limit linked to personal checking account that gives a bounce-proof protection if the write a check for an amount that beats an account balance.
It is two different types of loans: unsecured and secured.
 Unsecured loans do not require protection and they are made based on credit score and ability to repay.
 Secured loan it is a guaranteed by deposit, which is an item of the same or better value than the amo...

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...oor areas.

 Hysteresis – it is an idea that past unemployment styles are likely to cause future unemployment. If young adults have been without a job in the past, it becomes increasingly hard to find a job. The reason is that because: o Lack of jobs may cause young workers to become demotivated o A lack of past employment may cause firms to be unwilling to hire in the first place o Unemployment means workers do not have the opportunity to learn skills and on the job training

The graph shows how unemployment rate for 16- to 24-year-olds varies by area. To improve this a statistical reliability, the data included average numbers for the latest three years

The graph presented identical information but in terms of the real records of jobless. The data presented goes back to 1993 when unemployment was at a peak in the recession of the early 1990s.

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