Chp 9 Credit Management

Chp 9 Credit Management

Multiple Choice

What consequences does a person experience if they have a low credit score?

• high interest rates

• pay more for same goods and services

• unable to get loans

• all of the above

Multiple Select

What are some alternatives to using credit?

• Not buying it

• Pay using savings

• Take out a payday loan

• Postpone buying until you have the cash

Multiple Choice

Something that is owed that will decrease future earnings.

• debt

• debt load

• bankruptcy

• credit score

Multiple Choice

A ____________ is the amount of debt a consumer has at a given point in time.

• minimum payment

• line of credit

• debt load

• cash owed

Multiple Choice

Which of the following is not a negative aspect of using credit?

• opportunity to buy expensive items, and pay for them later

• reduction of future spendable income

• overspending

• expensive

Multiple Choice

A person's financial personality is..

• if they are nice or not

• if they pay back their debts or not

• a combination of an individual’s attitudes about money and spending patterns

• a combination of their debts and earnings

Multiple Choice

Of the following, which is not a result of a credit problem?

• lien

• garnishment

• foreclosure

• good credit score

Multiple Choice

An organization that provides debt and financial management advice and services to people with debt

problems at little or no cost is called a _________________________.

• credit counseling service

• banks

• debt collectors

• bankruptcy

Multiple Choice

Taking of collateral when a borrower fails to repay a loan.

• stealing

• repossession

• bankruptcy

• identity fraud

Multiple Choice

Perhaps the most serious type of repossession, when there is a forced sale of a property, such as a house,

is ____________.

• credit fraud

• foreclosure

• debt collection

• bankruptcy

Multiple Choice

Which of the following always results in lost ownership of property?

• minimum payment

• repossession

• bankruptcy

• debt collection

Multiple Choice

Legal state in which the courts excuse a debtor from paying some or all debt.

• court ordered

• bankruptcy

• repossession

• debt load

Multiple Choice

Eliminates most types of debt and stays on a person’s credit report for up to ten years.

• chapter 13 bankruptcy

• chapter 7 bankruptcy

• repossession

• debt

Multiple Choice

Permits debtors with regular incomes to pay all of a portion of their debts under the protection and supervision of the court.

• Chapter 13 bankruptcy

• Chapter 7 bankruptcy

• foreclosure

• debt

Multiple Choice

What type of debt cannot be wiped out by declaring bankruptcy?

• student loans

• taxes

• alimony and child support

• all of the above

Multiple Choice

Of the following, which is not a result of a credit problem?

• lien

• garnishment

• foreclosure

• good credit score