Entrep Q1

The least amount that must be paid on a credit card each month is

• Minimum Payment
• Late Fee
• Credit Limit
• money time

Only making the minimum payment on a credit card every month will:

• lower the amount total paid for the purchase
• take longer to pay off which will result in paying more interest, more money!
• pay off the credit card faster

It is best to pay more than the minimum due on your credit card.

• True
• False

A credit card is

• Pre-approved credit which can be used for the purchase of goods and services now and payment of them later
• Credit which must be repaid in a series of equal payments
• A plastic card that is electronically connected to the cardholder's bank account
• None of the above

Credit is a postponement of payment facility provided by the supplier to the consumer.

• TRUE

• FALSE

Debt means the amount of money that can be borrowed.

• TRUE

• FALSE

Below are methods of smart management of credit and debt, EXCEPT

• Use auto debit payment method to pay bill

• Pay only the minimum amount for the usage of credit card

• Pay within the cash discount period

• Pay the outstanding balance listed on the credit card statement

Many people are bankrupt due to credit cards

What are 2 ways to overcome this situation above?

• Prepare budget

• Spend excessively

• Plan your expenses

• Not use credit card at all

Choose 2 advantages of credit card.

• Overspending without worry

• Easy and efficient payment method

• Does not require us to carry a lot of cash.

• Incur charges such as finance charges

Who of the below is eligible for a credit card?

• Chester, a PT3 candidate

• Jeremy, a college student

• Mrs Tan, a housewife

• Sebastian, a business man