WorksheetsDebt Snowball
Total questions: 24
Worksheet time: 13mins
In Dave's words, a borrower is a(n) _______ to the lender.
asset
slave
benefactor
A card used to make purchases directly from your checking account.
credit card
social security card
debit card
green card
Which debt should you pay off first?
one with the highest interest rate
one with the highest balance
one with the smallest interest rate
one with the smallest balance
Which of the following would Dave recommend?
co-signing a loan
using Check Into Cash businesses
consolidating debt
none of these
You'd make Dave happy if you did which of the following?
kept only one credit card for emergencies
never made a car payment (because the car is already paid for)
frequented a title pawn store
A long-term rental agreement is often called
paradigm
mortgage
lease
none of these
Which is NOT a reason credit card companies target students?
they have lots of money
they will likely keep their first credit card for life
they will likely rack up balances
they will likely make minimum payments
You have a loan with 60 days same as cash and you don't get it paid off in time. What happens?
you have to extend the loan
interest is paid on the extra number of days is takes to pay off the loan
A higher interest rate is charged and charged retroactively
you have to pay a penalty fee
If you pay with a card, you are likely to spend more money.
True
False
Jim has Sam co-sign a loan for him. Jim stops making payments. What happens?
Jim becomes liable for the debt.
Sam becomes responsible for the debt.
Nothing
None of the above
Why are cash advance and payday loans a bad idea?
They are a loan
They have strict regulations
They have extremely high interest rates
You have 5 various items of debt. You decide to roll them into one payment. What is this called?
leasing
debt consolidation
mortgage
equity
What makes a loan "secure"?
Collateral
Passwords
Keys
Money
Which is NOT true about making purchases with credit cards?
You spend 12-18% MORE when using a credit card.
You spend 12-18% LESS when using a credit card.
You are less likely to experience neurological pain when purchasing with a credit card.
You spend MORE when paying with cash.
Define "Debt Snowball"
A method used to pay off debts from smallest to largest.
A method used to pay off debts from largest to smallest.
A method used to pay off debts based on interest rates.
A method used to increase your debt and therefore your credit score.
Having 3-6 months of expenses saved in an emergency fund is Baby Step #
1
2
3
4
If you absolutely have to loan money to a family member,
loan them the money and be mad when they don't pay you back.
co-signing is what you should do.
do so with the assumption that you will not get that money back.
none of the above.
Which statement is NOT true about debt consolidation?
You end up with only one payment to manage.
You end up saving money because you get a lower interest rate.
Smaller payments mean more time in debt.
Your lower interest loans also get rolled into the deal so you end up with minimal savings.
Debt consolidation is
Using a credit card to purchase something.
Having more than one item of debt.
When someone co-signs on a loan with you.
Combining separate debt payments into one single payment.
The first step you take when doing the debt snowball is
Sort your debt from smallest to largest balance.
Call the bank.
Get a loan.
Split your "extra" money over all of your debt.
You buy your car with the "36 months 0% APR" deal. What's the catch?
They actually charge your interest during those 36 months.
If you don't pay the balance in full within 36 months, they send you to a collection agency.
If you don't pay the balance in full within 36 months, they will charge you a high interest rate that become retroactive.
You will pay a penalty fee.
Baby Step #1
Pay off debt
$1,000 in your emergency fund
3-6 months of expenses saved in emergency fund.
15% of income in retirement
Pay off all debt is baby step #
1
2
3
4
When you pay with a debit card,
you still owe the money.
You owe the money plus interest.
the money is actually removed from your account.
None of the above.
