Chapter 15 Consumer Credit Questions

The usual trade-off of choosing small payments is

paying more in interest

Which law gives a borrower the right to stop payment

Fair Credit Billing Act

Chapter 7 Bankruptcy receives an individual from debts arising from

credit card charges

Under the Equal Credit Opportunity Act, you may sue a creditor if the creditor

discriminates against you

No matter how often you make payments, interest is calculated on the full amount of the original principal with the

add-on interest method

The legal process in which some or all of a debtor's assets are distributed among creditors because the debtor cannot pay his or her debts is called

bankruptcy

The greatest disadvantage of using credit cards is

being tempted to over spend

Which of the five Cs of credit does your income affect

capacity

You will probably find the least expensive loan from

family members

The periodic charge for using credit is called

interest