Credit: What and Why

What is credit

• Using someone else's money

• Charging something

• Using someone else's money, borrowed now with the agreement to pay it back later

What phased out, causing the need for credit

• Farming

• Bartering and trading

• Currency exchange

• Printing of paper money

What was the oldest form of credit

• Account at the General Store

• JcPenney and Belk

• Checking Account

• IRA

What increased as credit expanded

• Credit scores

• Individual purchasing power

• Group sales

• Value of corporations

When did people begin declaring bankruptcy

• 1920

• 1950

• 1970

• 1990

When did buying on credit become the American way of life

• 1920 - 1940

• 1920 - 1960

• 1920 - 1990

• 1975 - 1998

What transaction are hard to make without a credit card?

• Reserving a hotel, renting a card

• Renting a home, buying groceries

• Reserving a hotel, renting a car, making online purchase

What is the average amount of debt among Americans

• $2,500

• $3,500

• $5,000

• $10,000

What technique results in increasing credit card debit

• Robbing Mary to pay Bob

• Robbing Paul to pay Peter

• Robbing Peter to pay Paul

• Robbing Sally to pay Jane

Who borrows money from others

• Borrower

• Broke folks

• Debtor

• Creditor