Dave Ramsey Dangers of Debt

What is a home loan in which the interest rate will change periodically (i.e. annually). Typically adjusted based on a published index such as the Treasury Bill or LIBOR (3 words)

The preferred method of debt repayment. Includes a list of all debts organized from smallest to largest balance. Minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments

A decline in the value of property. The opposite of appreciation

The total dollar amount you pay to use credit

The process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract

The time period during which a borrower can pay the full balance of credit due with no finance charges

Credit line offered by mortgage lenders that allows a homeowner to borrow money against the equity in their home (3 words)

A temporary interest rate, advertised as a low APR to entice customers to apply for a credit card. After the introductory period, the interest rate will increase to the regular APR

Debt consolidation is wise.

• True

• False

You need credit card to rent a car.

• True

• False