a plastic card used to buy good or services using debt

The fair debt collection law says:

how debt collectors can contact people

Stay away from student loans because

paying them back is hard: can't buy house, cars, vacation

Debt can impact a family's budget because

limits new purchases for food, clothes, entertainment

The best way to buy a car

save up and pay cash for a car in your price range

If you need to pay back debt, pay the smallest first $50, then the next $500, then $5, 000 etc.

This is called the debt snowball

a program that allows students to work while in college

How can you pay for college

choose an affordable school, get good grades, get a scholarship, get a job, Save up before you go

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Financial Literacy Chapter 2

20 termsStudBud Administration224 plays

Foundations in Personal Finance Chapter 1 Credit & Debt

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Questions 20

Answers

1
Credit Cards
a person or company who loans money
plastic card connected to your bank
a plastic card used to buy good or services using debt
An assigned number to indicate ability to pay
2
True or False: Car loans are a way of life, you will always have a car payment.
TRUE
FALSE
3
The fair debt collection law says:
how much debt a person can have
how much a lender can charge
how much debt a person much repay
how debt collectors can contact people
4
Credit scores are measures of all of the following except:
Savings at a bank
New Debt
Debt history
Types of Debt
5
______________ is owning anything to anyone for any reason.
Debt
Cash
Banking
Investments
6
True or False: Debt is encouraged and marketed by stores like any other product.
True
False
7
A fee that a lender charges for you to purchase something and pay over time is
credit
finance rate
interest
dividend
8
Stay away from student loans because
paying them back is hard: can't buy house, cars, vacation
you don't need to go to college
you don't have to pay back
college is free
9
1. Quit Borrowing, 2. Save Money, 3. Sell Something, 4. Work more, 5. Pay off Debt
Steps for middle schoolers
The 5 steps to get out of debt
Good advice
How to shop
10
Debt can impact a family's budget because
allows them to buy things they can't afford
limits new purchases for food, clothes, entertainment
increases amount they have to spend
helps them live beyond their means
11
A liability can be described as
money that you have in a savings account
money you owe; debt
something that goes down in value over time
something you own that has value
12
The best way to buy a car
grandparents can cosign a loan
save up and pay cash for a car in your price range
borrow money from your parents
with a down payment, then borrow the rest
13
Debt Collectors can call you
At work
At home before 9 pm
and use strong language to persuade you
over 20 times per day
14
What percentage of college students have student loan debt?
70%
5%
20%
100%
15
Credit report laws protect
accuracy, identity
accuracy, false reporting
accuracy, fairness
accuracy, privacy, fairness
16
If you need to pay back debt, pay the smallest first $50, then the next $500, then $5, 000 etc.
This is how you attack a mountain of debt
Called Budgeting
This is called the debt snowball
Called prioritize
17
The debt monster
can follow you around
can become a huge problem
can limit your options in life
All of the above
18
Work Study
incentive for completing homework
paid for going to class
working on your homework
a program that allows students to work while in college
19
On average, how much of a person's pay is sent back out for debt payments?
0%
less than 10%
25%
80%
20
How can you pay for college
choose an affordable school
get good grades, get a scholarship
get a job
Save up before you go

Financial Literacy Chapter 2 Flashcards | StudBud