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

There is never a charge for a debt repayment plan administered by a Consumer Credit Counseling Service office.

What are the various methods used to calculate interest?

The CCCS sometimes charges a fee if it:

Which one of these is the fairest method of calculating finance charges on a credit card?

Credit unions offer loans with a single repayment schedule to non-members.

The finance charge is the total dollar amount you pay to use credit.

If creditors give you no credit for payments made during the billing period,then this is called the:

If you pledge property or other assets as collateral,you will probably pay a higher interest rate on your loan than you would without collateral.

In addition to the Consumer Credit Counseling Service,the following entities also provide counseling services:

Sandra Jennings gets a loan from General Motors Acceptance Corporation.Which type of lending institution is this?

What can you do if you are unable to meet your credit obligations?

Inflation increases the purchasing power of money.

The fairest method of calculating interest is the average daily balance method.

Chapter 7 bankruptcy is also known as a straight bankruptcy.

When more than one payment is made on a simple interest loan,the method of computing interest is known as the declining balance method.

If a new-car loan costs 6%,then a used-car loan would cost:

The CCCS is primarily concerned with:

In a straight bankruptcy,many,but not all,debts are forgiven.

Explain the Rule of 78s.

Which of the following methods calculates interest on the full amount of the original principal?