Taking responsibility for someone else's loan.

Helps you pay off debt by using the money from one loan to pay on another loan once the first loan is paid off.

A long-term rental agreement.

This type of loan can be charged up to 400% in interest.

The amount of interest charged on your home loan can go up and down.

This loan requires that you use your home as collateral to borrow money.

Debt consolidation is a good idea.

Cars can only be rented using a credit card.

It is a good idea to buy a used car to avoid some depreciation.

Typically millionaires drive new cars and never purchase used cars.

Teenagers and college students are the number one target of credit card companies.

Co-signing for a friend is a bad idea because you will be liable for the loan if your friend does not pay it.

Home equity loans are a good way to consolidate debt because all of your debt in combined into one payment.

Adjustable rate mortgages and balloon mortgages are not a good idea.

A balloon mortgage requires one big payment after a certain amount of time. This can be difficult to make if you do not set aside money for this payment.

A great way to manage your credit card usage is to pay the balance in full each month.

Teenagers should have credit cards because it will teach them how to manage credit card debt and budgeting.

Consolidating your debt into one payment is a good way to manage your debt.

Reasons that keep people in debt (check all that apply)

A finance charge is the cost of credit.

Food, shelter, clothing, and transportation

This number demonstrates your ability to repay loans.

Transunion, Equifax, and Experian

A federal law that regulates the collection of consumers' credit information and access to their credit reports.

The amount of your income after taxes have been deducted.

A liquidation of a person's non-exempts assets to pay debts and is reported on your credit for 10 years.

Using someone else's information to obtain credit.

Wrongful or deceptive acts meant to result in financial gain.

A court order that requires you to repay a debt. Typically this money is taken from your paycheck.

A summary of your financial history including loans and payments made on your loans.

The best way to deal with debt is to establish a plan to pay off the debt.

Credit collectors can call anytime they like including calling your work place.

You should never check your credit report.