Personal Finance Debt Review

Which of the following is true about using a credit card?

• It's the same as using cash.
• When you use a credit card, one spends less
• When you use a credit card, one spends more
• Studies show it registers as pain

Payday lending and cash advance services are 

• A thing of the past that no one uses today
• Highly effective at cutting down debt
• Huge Ripoffs
• the best way to build a credit score

Who is the number one target of credit card companies?

• People without a high school diploma
• Teenagers
• The elderly
• Middle Aged Adults

Tags

CCSS.RL.11-12.6

Kevin has the following debts: Home Equity Loan, $24,000; Visa, $1,200; Student Loan, $5,000; Car, $12,000. How should he prioritize his debt snowball?

• Home Equity Loan, Visa, Student Loan, Car
• Visa, Car, Student Loan, Home Equity Loan
• Visa, Student Loan, Car, Home Equity Loan
• Cannot prioritize the debt snowball without knowing the interest rates on

What is the best way to buy a car?

• O% interest for 36 months on new or used
• Leasing
• Purchasing new at the end of the year
• purchase used and pay cash

What type of mortgage is best when buying a home?

• Fixed Rate 30 year mortgage
• Fixed Rate 15 year mortgage
• Adjustable Rate Mortgage
• Balloon Mortgage

Which of the following is NOT a step out of debt?

• Consolidate the debt
• Quit borrowing money
• Sell Something 
• Use the debt snowball method

The key to building wealth is

• drive reliable used cars
• get excellent interest rates
• get a good education and income
• to stay debt free

When buying a new car it will lose ____% driving it off the lot, and _____% after 4 years.

• 10, 40
• 20, 55
• 25, 70
• 40, 90

The main difference between a credit card and debit card is

• A debit card requires that you have the cash available in the account; a credit card doesn't
• A credit card has the Visa or MasterCard logo; a debit card doesn’t
• A debit card does not offer the same protections as a credit card.
• A credit card requires that you have the cash available in the account, a debit card doesn't