Credit & Debt

Credit is a postponement of payment facility provided by the supplier to the consumer.

• TRUE

• FALSE

Debt means the amount of money that can be borrowed.

• TRUE

• FALSE

Below are the reasons that personal budget is important, EXCEPT

• Save

• Plan spending prudently

• Overspending

Below are methods of smart management of credit and debt, EXCEPT

• Use auto debit payment method to pay bill

• Pay only the minimum amount for the usage of credit card

• Pay within the cash discount period

• Pay the outstanding balance listed on the credit card statement

Many people are bankrupt due to credit cards

What are 2 ways to overcome this situation above?

• Prepare budget

• Spend excessively

• Plan your expenses

• Not use credit card at all

Choose 2 advantages of credit card.

• Overspending without worry

• Easy and efficient payment method

• Does not require us to carry a lot of cash.

• Incur charges such as finance charges

Who of the below is eligible for a credit card?

• Chester, a PT3 candidate

• Jeremy, a college student

• Mrs Tan, a housewife

• Sebastian, a business man

A credit card users must

• remember the his/her pin

• not record the pin number on the back of the card

• not give credit card details to strangers

• not check the transaction in the credit card statement

Fill in the blank

Financial statement include details such as credit limit, statement date, ____________________ and so on.

• minimum payment

• birth date

• phone number of your parents

• the name of beneficiary

Interest free period usually is ______ days from the statement date.

• 15

• 20

• 30

• 35