Exam 6: Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Using parents or family members as lenders is the most risky type of loan method.

The most commonly purchased type of credit insurance is

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

There is never a charge for any service provided by a credit counsellor.

If creditors add finance charges after subtracting payments made during the billing period,this is called the

Creditors use the same system to calculate the balance on which they assess finance charges.

The consumer credit laws require that an advance notice be given before repossessing a car.

If you are having trouble paying your bills,turn to a company that claims to offer assistance in solving debt problems.

What are the major sources of consumer credit?

By evaluating your credit options,you can reduce your finance charges.

The consumer proposal is a maximum five-year plan for paying creditors all or apportion of the total debt owed.

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

During the last decade,the personal bankruptcy rate has increased almost 8 percent annually.

An increasing number of bankruptcy filers are well-educated middle-class baby boomers.

With a larger down payment,you'll probably pay a higher interest rate on your loan.

In a bankruptcy,a trustee

Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do.

What are two key concepts to keep in mind as you shop for credit?

The Annual Percentage Rate is the percentage cost of credit on a yearly basis.

Banks often encourage you to make the maximum payment.