Personal Finance - Credit and Debt

On average, over 70% of college students graduate with student loan debt.

• true

• false

On average, how much of a person's take-home pay is sent back out for debt payments?

• 8%

• 12%

• 25%

• 40%

Car loans are just a way of life. You will always have a car payment.

• true

• false

When you buy things with cash, you will always pay more for the things you buy.

• true

• false

The FICO score measures all of the following except:

• debt history

• savings account balance

• types of debt

• new debt

A fee that a bank, credit card, or other lender charges for the opportunity to purchase something and pay for it over time is called:

• interest

• dividend

• credit

• finance rate

Staying away from car payments by driving reliable used cars is what the typical millionaire does.

• true

• false

Which of the following is not one of the ways that the federal Fair Credit Reporting Act of 1970 protects consumers?

• the accuracy of the credit report

• the privacy of the consumer

• the financial goals of the consumer

• the fairness of credit reporting

Which of the following describes the best way to buy a car?

• ask your parents to borrow money for the purchase

• save up and pay cash for a used car in your price range

• save up a nice down payment and finance the remaining cost of the car

• allow your grandparents to cosign your loan for a new car

The federal Fair Debt Collection Practices Act of 1977 dictates how:

• much debt a person is allowed to carry

• much interest a lender can charge

• debt collectors can interact with individuals

• much of a debt a per must repay