Ch. 4: Debt Review

a yearly fee that is charged by the credit card company for the convenience of a credit card

• semi-yearly fee

• annual fee

• option payment

• broker's fee

cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan

• annual lender's fee

• annual bank rate

• annual percentage rate

• monthly percentage rate

a type of card issued by a bank that allows users to finance a purchase is called a _______ ______

(a)  

a measure of an individuals credit risk; calculated from a credit report using a standardized formula

• card score

• credit report

• credit score

• card report

a 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

• rock snowball

• credit hacking

• debt snowball

• repayment ladder

a decrease or loss in value is called (a)  

(think about an automobile)

an interest rate charged to a customer during the early stages of a loan; the rate often goes up after a specified period of time

• hook-in rate

• bottom rung rate

• initial attraction

• introductory rate

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 for another term

• borrowing period

• loan period

• loan term

• period of interest

name one financial myth that young adults fall for

(a)  

about (a)   % of americans are living paycheck to paycheck