What kind of credit is used to finance a single high-priced item

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					 Got      Bankruptcy           Moving   Know        Grab
Credit?      Law       Debt?    Out     That Term   Bag

 10         10         10      10         10        10

 20         20         20      20         20        20

  30        30         30      30         30        30

 40         40         40      40         40        40

 50         50         50      50         50        50
What kind of credit is used to
 finance a single high-priced
item through equal payments
          over time?
             10

      Installment
This credit gives you the ability to
    receive services now and
        pay for them later
                20


       Service Credit
What is credit that can be obtained
 quickly and easily but often has
           hidden costs
                30

     Easy access credit
 What is the maximum amount you
would be liable to pay on your credit
  card that was stolen and used by
someone else if you report it missing
            right away?
                 40
    $50 max, but usually $0
 List some ways to get started
        on good credit
              50
• Maintain a checking account,
  get a debit card, get utilities in
   your name, get a credit card
 with a small limit and pay it off
              monthly
      True or False:
Bankruptcy law ensures fair
  treatment for creditors
            10

            True
        True or False:
Bankruptcy can be voluntary or
        involuntary
             20

             True
    Under which type of
bankruptcy is all debt erased?
             30


         Chapter 7
Which type of bankruptcy creates a 3-5
year court-approved plan to pay back
                debt?
                 40


              Chapter 13
What types of debt cannot be
discharged by bankruptcy?
            50

   •Student loans,
 •taxes due the IRS
   •Child support
   •Criminal fines
            True or false:
Being financially irresponsible means a
         person has no income.
                  10

     False. It means they are in
    debt and have an unbalanced,
          unhealthy lifestyle
        True or False:
Debt represents future earnings
        already spent
              20

            TRUE
What effect do late credit card
payments have on consumers?
              30


    Higher interest rate,
    incur penalties, hurt
        credit score
What is regret over a buying
     decision called?
            40
     Buyers remorse.
A good Buying Plan can
       help this!
List 3 strategies to avoid bankruptcy
                  50
   • Cut up/ stop using credit cards
         • Credit counseling
 • Debt management/repayment plan
        • Loan consolidation
    • Call to reduce interest rates
           True or False:
Landlords must keep security deposits
       in a separate account
                 10

                True
When a tenant decides to move out, how
much notice must he give the landlord?
                  20


            30 days
What are the benefits of using a credit
               card?
                  30

     Convenience, rewards,
   increased spending power,
     protection from fraud
    List 2 rights of landlords
               40

  Inspect the property with
proper notice, retain security
 deposit if damages, receive
        rent on time
What is true of an FHA mortgage?
      List at least two items
               50
     •1st time home buyers
    •Smaller down payment,
 •required insurance premium,
      •backed by the FHA
What do we call it when something of value is
  exchanged for something else of value.?
( It is what makes a contract legally binding.)
                      10


                consideration
A fee charged for violating a term of a
          credit agreement
                  20

             Penalty
Paying off an old mortgage loan with
a new loan that has better interest rate
                  30
         Refinancing
 Following graduation, you may want to do
this with your student loans so that you only
       have one student loan payment
            to make each month
                     40
           Consolidate
Systematic decision making involves all
       of the following except
                    50
a. Making choices that reflect goals
b. Consider all pros and cons
c. Requires financial responsibility
d. Buying what you want at any time
Property used as security for a loan is
               called
                  10

             collateral
The legal process that allows a lender to
  take possession of a house because
mortgage payments are not being made
                   20

            Foreclosure
  Name a main purpose of the
       bankruptcy law
              30
•To ensure fair treatment of
        creditors
•To prevent bankruptcy fraud
The term for non-profit agencies that
help consumers resolve problems with
   businesses, creditors and others
                 40


     Consumer Advocacy
     When might bankruptcy be a
       person’s best option?

                  50
        • only as a last resort
•When debt is insurmountable you will
       never be able to pay it.
     •When massive changes in life
circumstances have made it impossible
       to climb out of the debt pit
            Final Jeopardy
Three roommates share a 2 bedroom
apartment for $1300/month. One person
sleeps on the couch so they have decided it
would be fair to split the rent as follows:
35%/35%/30%, with the one on the couch
paying just 30%. What are the 3 rent
contributions?
   $455, $455. $390 (couch dweller)

				
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