Develop an understanding of debt and consumer credit

A credit card is non-revolving credit which allows the consumer to make purchases on credit.

• True

• false

Which of the following is non-revolving credit?

• Car loans

• Overdraft facilities on current account

• Credit cards

• None of the above

Credit is very important because it allows you to borrow money for expenses.

• true

• false

Why is credit dangerous

• Can buy cars and houses

• Debt and low rates

• High rates and Debt

• High Rates and no debt

The maximum amount you may borrow on a credit card is known as:

• creditworthiness

• credit report

• credit limit

• variable rate of credit

What is one advantage of having a credit card?

• It prevents you from spending more than you earn.

• It encourages you to budget your money wisely.

• It helps you pay off debts that you may have.

• It allows you to make purchases without carrying lots of cash.

I lend you money , Who am I?

• I am a lender.

• I am a borrower.

............ a debt that is baked by any collateral

• Secured

• Unsecured

• Loan

............ a debt that is not guaranteed or baked by any collateral

• Secured

• Unsecured

• Mortgage

............. is an example of secured loan

• Personal loan

• Visa card

• Master cared

• Mortgage