Exam 7: Choosing a Source of Credit: the Costs of Credit Alternatives

Explain simple interest.

Don't make the mistake of trusting which of the following counseling providers that promise to help you clean up your credit report for a fee:

Borrowing from credit unions has several advantages but does not include:

Which of the following financially supports the Consumer Credit Counseling Service with contributions?

If you default on your automobile loan,most automobile financing agreements:

If creditors give you no credit for payments made during the billing period,it is called the adjusted balance method.

If you want to take advantage of the interest-free period on your credit card,you must pay your bill in full every month.

List several national nonprofit organizations that provide information and assist people with debt problems by phone and online.

After you have selected a product,you should buy it immediately before the store runs out of it.

Randy Ice starts the month with a balance on his credit card of $800.On the 10th day of the month,he purchases $200 in clothes with his credit card.On the 15th day of the month he makes a payment on his credit card of $300.The average daily balance for the month including the new purchase is $683.The average daily balance for the month excluding the new purchase is $550.The bank charges 1.5 percent per month and uses the average daily balance excluding new purchases method.What would Randy's finance charges be for the month?

Which one of the following is often the source of the least expensive loan?

The Rule of 78s dictates that a borrower pays:

Gary Simpson notices that his neighbor has a brand new Ford F150 truck parked in the driveway.Even though his current car is fine,Gary decides that he needs a new car and goes out and purchases a Tundra with a six-year loan.Which one of the following best explains Gary's spending,which can lead to overindebtedness?

The Fair Debt Collection Practices Act regulates the ways debt collection agencies do business.

The rule of 78s formula dictates that you pay less interest at the beginning of a loan.

If you receive a phone call from a debt collector,s/he must send you a written notice within ________ days.

If you declare a Chapter 7 bankruptcy,you do not have to pay alimony,child support,or educational loans.

According to a consumer affairs columnist,the nation's number one family financial problem is:

Explain the concept of "float."

Jerrod Dean starts the month with a balance on his credit card of $800.On the 10th day of the month,he purchases $200 in clothes with his credit card.On the 15th day of the month he makes a payment on his credit card of $300.The bank charges 1.5 percent interest per month using the adjusted balance method (and excludes new purchases).What would Jerrod's finance charges be for the month?