Foundations - Debt

College students receive an average of four phone calls and five mailings each month encouraging them to:

• Get a job

• Go to graduate school

• Apply for credit cards

• Open a bank account

Debt is a wise financial choice because of the rewards you get back.

• True

• False

Debt has been marketed to us for so long, most people struggle to imagine life without it.

• True

• False

The 1910 Sears Catalog said, "Buying on credit is the best thing you can do."

• True

• False

What myth do students believe about debt in college?

• That they can buy whatever they want while in college and can pay for it later.

• That they shouldn't buy anything in college and save all their money.

• That debt doesn't count before they turn 21.

• You can only collect debt from things like credit cards.

A cool looking car isn't necessary for school.

• True

• False

Loaning money to a friend or a relative is helping them.

• True

• False

Banks require a co-signer because they know:

• The person signing the loan won't repay the loan

• You know the person better

• The person signing the loan just needs a little help

• Money doesn't grow on trees

What percentage of millionaires started with nothing?

• 0%

• 80%

• 10%

• 25%

Cash advance, rent-to-own, title pawning, and payday lending are services to lower income people to help them get ahead.

• True

• False