PF Chapter 7

The average American has almost $5,000 in credit card debt.

• True

• False

Credit is the most commonly used method of payment in the U.S.

• True

• False

In the 1990's, many people declared bankruptcy due to overuse of credit cards.

• True

• False

Overtime, credit changed from being used rarely to pay for emergencies to being part of daily life for many Americans today.

• True

• False

A person that borrows money from others is a

• creditor

• debtor

• lender

What are the three main qualifications for getting credit?

• Age, Gender, Income

• Age, Financial Position, Collateral

• Income, Financial Position, Collateral

• Income, Location, Collateral

Property pledged to assure repayment of a loan

• Capital

• Collateral

• Credit

• Finance Charge

A service that allows people to make a purchase and get billed for it at a much later date (Example: Make a purchase in October and don't start paying until January)

• capital

• collateral

• line of credit

• deferred billing

A person or business that loans money to others

• debtor

• payee

• creditor

The value of property you possess after deducting debts

• assets

• capital

• collateral

• finance charge