Financial Responsibility

Henry is having trouble paying his rent and making minimum payments on loans and credit cards. Which should he consider? Check all that apply.

Create a budget to track income and expenses. Talk to a consumer credit counseling service.

Freya quiere usar su tarjeta de débito para comprar una computadora tableta $ 135. What must Freya consider before using her debit card? Check all that apply

She must be sure there is at least $135 in her bank account for the purchase. She must check to see if any automatic payments are scheduled for her account.

Choose the statement that describes an advantage of paying a bill through the mail with a check.

You do not have to share banking information.

Which expense is a bank least likely to extend a line of credit for?

a flat-screen TV

Choose the advantages of using a credit card. Check all that apply.

a. builds credit history d. small payments over time e. emergency funds intact

Which is a possible benefit of having a good credit history?

low interest rate on a car loan

Which is a disadvantage of withdrawing more money than is available in a checking account?

overdraft fee

Identify possible advantages and disadvantages of using automatic withdrawal to pay bills.

A benefit of using automatic withdrawals to pay bills is never making a late payment. A possible consequence of using automatic withdrawal to pay bills is possible overdraft charges if you don't have enough money in the account when the payment is made. You need to remember the amount will be taken out and be sure there is enough money in the account.

In a few sentences, explain what it means to be financially responsible.

Being financially responsible means you are earning more than you are spending. You should also create a budget to track income and expenses, and do what you can to always pay bills on tim

Freya realizes she does not have enough in her bank account to use the debit card. She decides to use a credit card instead. Which questions should Freya answer before using a credit card? Check all that apply.

Can I pay at least the minimum payment each month? Can I make payments on time and avoid late fees? How much in finance charges can I afford to pay?

You are a loan officer at a bank. An applicant comes to you for a $5,000 loan. Explain why you would want to know that person's credit history.

I would want to be sure the person is financially responsible and that he or she usually makes on-time payments. I would also want to know that the person can afford to make the payments each month, and that he or she does not owe too many other lenders.

Which financial problems might cause a person to be considered a bad risk for a loan to purchase a home? Check all that apply.

Making late payments. Having more debt than income. Filing for bankruptcy.