Keys to Financial Success Ch. 4 – Flashcards
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Which is true about the practice of marketing credit cards to teenagers?
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Teens are the number one target of teh credit card companies in America today. Brand loyalty to your first card is incredible, so credit card companies work hard to wim you over first. Colleges are losing more students to credit card debt problems than to academic failure.
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Payday lending and cash advance companies are aggressivley targeting which group of people?
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military
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The first debt in your debt snowball is the one with the highest interest rate.
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false
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a tax on the poor people who can't do math
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lottery
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the typical millionaire drives a reliable, used car
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true
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most expensive way to finance a new car
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leasing
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first charge card in the US
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diners club
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a drop int he value of property
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depreciation
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using equity in a home as collateral when borrowing money
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home equity loan
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combining separate debt payments into one single payment
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consolidation
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you need credit in order to rent cars and check into hotels
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false
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mortgage loans where the interest rate is adjusted periodically
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ARM
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Baby step 2:
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pay off all debt using the debt snowball
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co signing is the way to go
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false
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why are teens a major target of credit card companies
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the credit card companies want them to get into debt at an early age
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what is not a myth?
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78% of americans do not pay off their credit card balance every month
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in what type of loan would you use your house as collateral
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home equity
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how is a debit card like a credit card
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they both have a visa/mastercard logo, a debit card can be swiped and required your signature like a credit card
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what is not true about making purchases with a credit card?
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you send 12-18% less when using a credit card
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a widely held, but mistaken belief
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myth
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what is true about using credit?
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when using credit, one spends more
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why should you avoid lending money
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the relationship changes, and often ends completely, the person borrowing the money is in bondage to you
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payday lending, cash advance and title pawning loans cost the consumer:
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400% more annually
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the debt snowball
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baby step 2
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you pay debts in order from:
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small to high
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what isn't true about debt consolidation
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you end up saving money because you get a lower interest rate
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living without debt in today's society requires a paradigm shift
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true
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if 80% of millionaires are first generation rich, then one can conclude:
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they started with nothing, did smart stuff, and become millionaires
