Case Study - Vea

Question 1

What are her living circumstances?

Answer 1

• Family lives in rental property with 4 older brothers
• Vea pays towards rent to help her mother with the upkeep of the house

Question 2

What is her career?

Answer 2

• Received 3 A’s at A-levels
• considering a degree apprenticeship in computer science, promising future income
• will work 4 days a week at this apprenticeship

Question 3

How does work effect vea’s living situations?

Answer 3

• it is in leeds and she doesnt drive thus will pay £3 on train tickets per day
• considered living in leeds but she would need to borrow money to do so, implying rent is higher in leeds

Question 4

What is Vea’s current income?

Answer 4

• no savings
• job pays £18k
  -around £1500 gross pay per month
  
  • £150 income & NI
    per month
• Net pay of £1350 per month
• Train ticket £12 thus roughly £50 a month
• £1300 after travel06t

Question 5

What are Vea’s concerns about her job?

Answer 5

• distance
• extra travel expense
• she must purchase £300 worth of work outfits

Question 6

What is Vea’s borrowing status?

Answer 6

• made arrangements w her bank to transfer to a current account, been approved for £500 overdraft at 39.9% APR
• approved for a credit card with a credit limit of £1000, with 0% interest for the first 3 months, then 25.9% APR

Question 7

What are the 3 main solutions to Vea’s issues?

Answer 7

• Overdraft
• Credit card
• Store card

Question 8

What are advantages of credit cards? (5)

Answer 8

• accepted nearly anywhere worldwide
• most offer purchase protection
• many offer extended warranties
• Introductory 0% APR offers
• Points from rewards credit card can be redeemed in different ways, including as statment credit

Question 9

What are disadvantages of credit cards?

Answer 9

• Rewards rates for specific retailers may be low
• They tend to have higher limits, which may mean more debt if your not careful

Question 10

What is a store card?

Answer 10

credit card offered by a specific retailer that you can only use with that retailer

Question 11

What are advantages of a store credit card? (5)

Answer 11

• Store credit cards are easier to qualify for especially if you have never had a credit card or are rebuilding you credit card, but a secured card might make more sense
• Tend to have higher rewards fir their own retailers than you’d get with a credit card
• receiving special offers throughout the year. only available to store cardholders
• Some offer free shipping on online purchases
• Nearly all have no annual fee

Question 12

What are disadvantages of a store credit card?

Answer 12

• Only use the card in that store (and occasionally related brands)
• Come with a low credit limit, even with good credit
• Usually carry a high interest
• Rewards are only typically redeemable for store discounts

Question 13

What is the difference between a credit card and an overdraft?

Answer 13

• Credit cards ask you to make a minimum payment each month but however has no set end date. Whereas overdrafts have no set repayment date
• Credit cards 0% deals on purchases and balance transfers will only last a set number of months. For overdrafts, any interest free period you’re given mazy only last a set period like a year.

Question 15

What makes a cs 10 mark question?

Answer 15

This is the analyse question
- more than 2 relevant factors analysed with direct reference to Veas circumstances or the case study
- further analysis of some relevant factors including resulting implications of a factor or the significance of a factor to vea
- how factors influence each other

Question 16

What makes a cs 5 mark question?

Answer 16

• more than 2 relevant factors, with a good description
• ## each idea has direct and good level of reference to veas situaion