Credit Management

The least amount that must be paid on a credit card each month is

• Minimum Payment
• Late Fee
• Credit Limit
• money time

The credit company can charge interest if the credit card bill is not paid in full by the due date.

• True
• False

How can a cardholder avoid paying interest on a credit card?

• Pay the balance in full every month
  
• Pay the minimum payment after its due date
• Do not pay anything
• Pay the minimum balance every month

Only making the minimum payment on a credit card every month will:

• lower the amount total paid for the purchase
• take longer to pay off which will result in paying more interest, more money!
• pay off the credit card faster

It is best to pay more than the minimum due on your credit card.

• True
• False

It would be best to have a high credit score

• True
• False

A credit report is a report showing a borrower's history of how well they paid their bills.

• True
• False

Debt settlement programs are typically free and can reduce your debt by as much as 90 percent.

• True
• False

. A legal process where property used as collateral is sold to pay off a debt is called        

• Garnishment
• Foreclosure
• bankruptcy
• defaulting

This occurs when creditors file a petition with a court asking the court to declare you bankrupt.   a.  repossession b.  foreclosure   c.  involuntary bankruptcy d.  voluntary bankruptcy

• Repossession
• Foreclosure
• involuntary
• voluntary