Dave Ramsey - Debt

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What is a credit card?

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A card issued by a bank that allows users to finance a purchase, borrowing money up to a certain limit.

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What does FCRA stand for?

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Fair Credit Reporting Act, a law that regulates the collection and use of consumer credit information.

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What is one right consumers have under the FCRA?

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Consumers are allowed to receive one free credit report every year.

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What is a common credit myth?

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The lottery and other forms of gambling will make you rich.

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What is the consequence of identity theft?

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If you are a victim of identity theft, you are responsible for paying back all of the debt incurred.

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What is the most cost-effective way to purchase a home?

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The most ideal way to buy a house is with 100% down; if that is not an option, get no more than a 15-year, fixed-rate mortgage with a down payment of at least 10%.

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What is a debit card?

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A card that allows users to access their bank account funds directly to make purchases.

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What is the difference between a credit card and a debit card?

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A credit card allows you to borrow money up to a limit, while a debit card uses your own money from your bank account.

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What is a mortgage?

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A loan specifically for purchasing real estate, where the property serves as collateral.

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What is the purpose of a credit report?

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To provide a detailed account of an individual's credit history, including credit accounts, payment history, and outstanding debts.