Review Questions
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Free
to Serve
I.
Credit
and Debt:
Credit
is the means to pay _______
for goods or services obtained _______.
(Buy now, pay later encourages impulsive purchases.)
When
the privilege of credit is accepted to purchase an item or a service a
__________ is incurred.
Debt
is a product that has been aggressively ______ since the late 1960s!
The
sad truth is that most Americans have been conditioned to believe
that debt is a ___________ part of life.
With
planning and sacrifice, you can live a life that is debt
_______!
II.
Types
of Consumer Debt:
A.
Auto Loans
(Reference
Session 1)
B.
Credit Cards
(Credit
Card Rationalizations:)
1.
Must have a credit card to __________ a _________.
2.
Must have a credit card to __________ a _________.
3.
Must have a credit card to __________ a _________.
4.
Must have a credit card for ____________________.
But
I pay my credit card bill off monthly!
Surveys
prove that when plastic is used ______% more is spent for food items and
______% more for non-food items.
Two test questions for credit card ownership!
1.
Are ALL credit card purchases for ___________ items?
2.
Do you
___________ pay
the bill on the due date?
(If
you answered NO to
either question, PLASTIC SURGERY
is a must for you!)
C.
Home
Equity Loans
Equity
is
computed by subtracting the amount ________ from the market value of your
house.
What
have you got to lose?
_________
__________
The
bait used for this trap is _________
_________.
These
type of loans have __________ interest rates that normally ____________
(while you sink!).
D.
Finance
Companies and Thrifts
These
companies specialize in _________ risk loans and charge extremely
_________ interest rates!
Depending
on state regulations governing interest rate caps, these loans can be
_________%.
The
bait used for many of these loans is _______ days same as cash.
E.
Friendly Loans and Co-signing
The
best way to loose a friend or strain a relationship is to ____________
money from a friend or family member.
Never, never, never co-sign! When you do, _________ are borrowing the money!
F.
Debt
Consolidation
Lenders
who market
debt consolidation loans normally pay all of your bills off and
then let you pay them plus a ______________.
This
method might ______________ the number of checks
you write monthly but will in most cases ____________ the number of months
you write the checks.
The
bait for this loan is _________ easy payment!
Let us help you.
Debt
consolidation does not eliminate the debt, it merely juggles it around.
It should not be used (even if it is at a lower interest rate)
until the ______________ problem is corrected.
