Got Credit?

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

2. The ability to borrow money and pay it back later, plus interest 10 Credit

3. Spending money on luxury items while basic needs are not being met is an example of 20 Financial Irresponsibility

4. True or False: While a billed amount is in dispute, the creditor cannot charge interest on the amount. 30 True

5. This increases the cost of items purchased by a credit card 40 Finance charges

6. List three examples of penalties and fees that may be applied under a credit agreement: 50 Penalty fee, increase interest rates, over-the-limit fee, termination penalty, lower credit score, late payment fee

7. True or False: Bankruptcy law ensures fair treatment for creditors 10 True

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

9. Under which type of bankruptcy is all debt erased? 30 Chapter 7

10. Which type of bankruptcy creates a 3-5 year court-approved plan to pay back debt? 40 Chapter 13

11. List 3 reasons why consumers should avoid bankruptcy? 50 Stays on your credit report for 10 years, lower credit score, causes high interest rates, difficult to obtain credit

12. A method of avoiding bankruptcy that requires you to turn over your checking account and bills to a debt manager 10 Debt Management

13. True or False: Debt represents current earnings already spent 20 False

14. What effect do late credit card payments have on consumers? 30 Higher interest rate, incur penalties, hurt credit score

15. True or False: It is unlawful for a debt collector to call you at your place of work 40 True

16. List 3 warning signs that debt has become a problem 50 Near credit limit, making only minimum payments, skip payments, phone calls from creditors

17. True or False: Landlords must keep security deposits in a separate account 10 True

18. Which of the following is not a cost of financial irresponsibility? 20 • Unhealthy lifestyle • No income • Poor family relationships • Lack of recreation B. NO INCOME

19. What are the benefits of using a credit card? 30 Convenience, rewards, increased spending power, protection from fraud

20. List 2 rights of landlords 40 Inspect the property with notice, retain security deposit if damages, receive rent on time

21. What is true of an FHA mortgage? List two items 50 Smaller down payment, insurance premium, backed by the FHA

22. True or False: Amortization is the process of dividing your debt obligation, plus interest, into increasingly smaller monthly payments over a set period of time 10 False

23. A fee charged for violating a term of a credit agreement 20 Penalty

24. Paying off an old loan with a new loan 30 Refinancing

25. Following graduation, you may want to do this so that you only have one student loan payment to make each month 40 Consolidate

26. 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 all the time D. Buying what you want all the time

27. A court order that pardons the debtor from having to pay debts 10 discharge

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

29. Credit that can be obtained quickly and easily but often carries high or hidden costs. 30 Easy Access

30. The process of helping consumers resolve problems with creditors and others 40 Consumer Advocacy

31. True or False: Debtors are required to receive credit counseling from a government –approved organization within six months before filing for bankruptcy relief 50 True

32. Final Jeopardy You can buy a refrigerator with your credit card and pay for it over the course of one year. With an interest rate of 14%, you would need to pay $150 for 12 months. You can rent the refrigerator for 12 months for $175 per month and, at the end of the rent period, buy it for $300. How much will you save using your credit card? $600.00