Buying used cars is a good way to avoid depreciation.
The typical American millionaire drives a brand new car.
false: The typical American millionaire drives a paid-for, used car that is two years old or older.
Which of the following is true about using credit?
When using credit, one spends more
Payday lending and cash advance companies are aggressively targeting which group of people?
If 80% of millionaires are first-generation rich, then one can conclude:
They started with nothing, did smart stuff, and became millionaires
The term “debt consolidation” is best described by which of the following?
Combining several debts into one payment
The elderly are the number-one target of credit card companies.
false: Young adults age 25 and younger are the number-one target of credit card companies.
Co-signing a loan is a great way to help out a friend or relative.
false; Co-signing is not a way to help a friend or relative. The bank/lender requires a co-signer because the borrower is unlikely to repay. The relationship will be damaged.
Most of the time it is not wise to take out an ARM or balloon mortgage.
On average, payday lending, cash advance and title pawn loans cost the consumer:
400% or more annually
The term “cosigning” is best described by which of the following?
Taking responsibility for someone else’s loan
Which statement is not true about debt consolidation?
You end up saving money because you get a lower interest rate
Which is true about the practice of marketing credit cards to young adults?
All of the above
Which is not true about making purchases with credit cards?
You spend 12-18% less when using a credit card
Why do people think that the home equity loan is a good idea?
There is a tax refund
It serves as a substitute for an emergency fund
It’s a way to consolidate debt
All of the above
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?
Visa, Student Loan, Car, Home Equity Loan
Which type of loan can be used for debt consolidation?
Home Equity
The term “payday lending” is best describe by which of the following:
Charages 400% and up for their services
The term ” leasing” is best described by which of the following:
Long-term rental agreement
Carrying cash results in a n increase of spending versus paying with credit.
Paying with credit results in an increase in spending—12-18% to be exact. Spending cash registers as pain in the brain, so people who use cash usually spend less.