Ch.4 debt quizzes for final ( Ramsey)

When you pay cash rather than swiping a card, you spend _______________.

12-18% less

Never take out more than a ______________ fixed-rate mortgage.

15-year

The birth of the credit card occurred around what year?

1950

The Federal Fair Credit Reporting Act requires the credit bureau to remove any and all inaccuracies within ___________ of being notified.

30 days

It takes the average consumer about _____________ hours to clean up the mess when their identity is stolen.

600

Consumer Reports did a study that showed _____________ of airline miles are never redeemed.

75%

What percentage of millionaires started with nothing?

80%

The most expensive way to finance and operate a vehicle is:

A car lease

opportunity:

Abounds everywhere

Dave describes some people who incorrectly believe that a "Dave car" must be...

An old beater car with smoke coming out the back

College students receive an average of four phone calls and five mailings each month encouraging them to:

Apply for credit cards

Statistics show that if a credit card company can be the first one to get their card in your hand, you'll __________________ for the rest of your life.

Be brand loyal to them

According to 75% of the Forbes 400 list, the #1 key to wealth building is to:

Become and then stay debt-free

Most millionaires have become millionaires by:

Buying and paying cash for used cars

If you're poor and you do rich people stuff, like saving and budgeting, you'll

End up rich

Cash advance, rent-to-own, title pawning, and payday lending are services to lower income people to help them get ahead.

False

Debt can be occasionally used to create prosperity if you're careful.

False

Debt is a wise financial choice because of the rewards you get back.

False

Everything that's said on TV and by the media is true.

False

Kids are supposed to carry the burden of the household when it comes to debt.

False

Loaning money to a friend or a relative is helping them.

False

Playing the lottery and other kinds of gambling will make you rich.

False

The 1910 Sears Catalog said, "Buying on credit is the best thing you can do."

False

There may be occasional reasons to go into debt, like real emergencies.

False

When a theft occurs, you are liable for all the money that an identify thief used

False

You have to build credit to survive.

False

You need to build up your credit to survive.

False

You can do everything with a debit card that you can do with a credit card except:

Go into debt

If you're trying to help out parents who are struggling, the best place to start is with an attitude of ________________.

Humility

When McDonald's first went plastic, they saw that the average ticket order of $4.75 ______________ to ______________ .

Increase; $7.00

If you spread a myth long enough, what happens?

It becomes accepted as the truth

You get a new way of doing things from

Learning

The car payment is the mantra of the ___________________

Middle Class

The first thing to go when life happens is

Paying extra on the house payment

A broke finance professor is like a:

Shop teacher with missing fingers

What myth do students believe about debt in college?

That they can buy whatever they want while in college and can pay for it later.

Banks require a co-signer because they know:

The person signing the loan won't repay the loan

A cool looking car isn't necessary for school.

True

A new car loses about 70% of its value in the first 4 years.

True

About 80% of identities are stolen by people you know.

True

Debt has been marketed to us for so long, most people struggle to imagine life without it.

True

If you pay a $225,000 Mortgage at 6% for 15 years rather than 30 years, you'll save $143,874.

True

It is a myth that car payments are a way of life and you'll always have them.

True

It's a myth that you need a credit card to rent a car or make a purchase online.

True

It's always better to just give family money rather than expect it back.

True

It's possible to not have a FICO score.

True

The FICO score is an "I Love Debt" score.

True

You can run a debit card as a credit card to get the same protection as a credit card.

True

If you want to win, find _____________ and mimic what they're doing.

Winners

The term "upside down" when it comes to cars means:

You owe more than the car is worth

If you drive a car that your parents have a loan on:

You should sit down and talk to them about options

Thirty-five percent of how a FICO score is calculated is based on:

Your debt history

Your largest wealth building tool is your:

income

The questions of broke people are:

"How much down?" and "How much a month?"

Teenagers and kids are now the ____________ target of credit card companies.

#1

The average car payment in the USA today is:

$464 a month

Consumers spend ______________ a year on credit card penalties and fees.

$90 billion