Dave Ramsey Debunking the Credit Myths

A long-term rental agreement on a car; a form of secured long-term debt

• Loan

• Lease

Teens are a huge target of credit card companies today.

• True

• Flase

Tags

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.5

CCSS.RI. 9-10.8

CCSS.RI.11-12.8

It is okay to use a credit card if you pay it off every month.

• True

• False

A decrease or loss in value.

• Depreciation

• Inflation

Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated.

• Loan Term

• Loan Financing

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.

• Credit Counseling

• Debt Snowball

Which of the following is not a credit myth?

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

• You have ʺarrivedʺ financially once you get approved for a credit card.

• Debt is a tool and should be used to create prosperity.

• Borrowing money can have serious consequences and prevent you from building wealth.

You need a credit card to rent a car or check in to a hotel

• True

• False

Co-signing a loan is a good way to help a friend or relative.

• True

• False

Tags

CCSS.HSS.MD.A.2

CCSS.HSS.MD.B.5

Which of the following is not a recommended step in the Drive Free method of purchasing a car?

• Plan your purchase in advance using the sinking fund method of saving.

• Place your savings in a mutual fund so that your money can make more money.

• Start with an inexpensive car and gradually move up in car value as your savings increases.

• Explore new car dealerships for the best interest rate.