Financial Literacy Month sees launch of first of four quarterly booklets, providing worksheets and self-assessment information for those considering a personal loan
WASHINGTON, April 3, 2012 /PRNewswire-USNewswire/ -- A financial literacy initiative that aims to educate the more than 30 million underbanked households in the U.S. about short-term, small-dollar loans was launched today by the American Financial Services Association Education Foundation (AFSAEF). Personal Loans 101 will provide borrowers with materials that will help them understand traditional installment loans and be able to differentiate them from other forms of credit.
The first of four quarterly booklets, Understanding Personal Loans, was issued today to mark the beginning of Financial Literacy Month. It takes potential borrowers through a process of self-assessment by asking a series of questions:
- Is a personal loan right for me?
- How do I know if I can afford a loan?
- What happens when I apply for a loan?
- What happens if I am late with a payment?
- What terms of financing should I understand before taking out a loan?
- Which laws exist to protect me?
The booklet provides worksheets that allow borrowers to obtain a clear picture of their financial situation by creating a monthly budget, and compare terms of different loans before taking on a new credit obligation. The materials will be made available in print through AFSAEF and American Financial Services Association (AFSA) members and in various online versions.
Future booklets in the Personal Loans 101 series will cover Understanding Credit Risk, The True Meaning of APR and Identifying Safe Personal Loan Options. Individually and collectively, the brochures will explain the advantages of traditional installment loans that are fully amortized, underwritten and repaid in regular installments made up of both principal and interest.
"Individuals and families need financial literacy skills to make sound financial decisions," said Susie Irvine, President and CEO of AFSAEF. "As we emerge from the economic downturn, people are looking for ways to protect their finances and access credit. Personal Loans 101 will be a comprehensive resource to help the underbanked fully understand small-dollar loans."
Printed versions of the brochures are available from the American Financial Services Association Education Foundation, 919 Eighteenth Street, NW, Suite 300, Washington, DC, 20006-5517, 888-400-7577, [email protected].
AFSAEF's mission is to help consumers realize the benefits of responsible money management, understand the credit process, and seek help if credit problems occur. More information is available at www.AFSAEF.org.
SOURCE AFSA Education Foundation