Dave Ramsey Chapter 4 Section 2 Debt vs. Wealth-Building

Front

What is debt considered as in the myth?

Back

A tool

Front

What is the largest wealth-building tool according to the text?

Back

Income

Front

What is the truth about the borrower?

Back

The borrower is a slave to the lender.

Front

What is the process called when a mortgage holder sells a property due to non-payment?

Back

Foreclosure

Front

What can a debtor give up in bankruptcy for a clean slate?

Back

Surrender of Collateral

Front

Define 'Foreclosure'.

Back

The legal process by which a lender takes possession of a property when the borrower fails to make payments.

Front

What does 'Surrender of Collateral' mean in bankruptcy?

Back

Giving up assets to creditors in exchange for debt relief.

Front

Explain the concept of 'Debt'.

Back

An obligation to pay money or perform services to another party.

Front

What is the difference between 'Debt' and 'Wealth'?

Back

Debt is money owed, while wealth is the accumulation of valuable resources.

Front

What is the impact of high debt on financial freedom?

Back

High debt limits financial freedom and can lead to stress and financial instability.