Term
| Describe the difference between a secured loan and unsecured loan. |
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Definition
| Unsecured is based on weather you are able to pay and secured is based on weather you have collateral or not |
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Term
| Explain why an adjustable rate mortgage (ARM)is a bad idea. |
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Definition
| The interest rate can change and you may not be able to afford it anymore. |
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Term
| Explain why financing a car is a bad idea |
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Definition
Harder to pay of your debt
You will pay interest
Car depreciates quickly |
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Term
| Describe the negative consequences of taking on debt what effects can debt have on your future. |
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Definition
| Constantly owe money and with be impossible to build wealth |
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Term
| What are some thing you can do to protect your personal information? |
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Definition
Use a paper shredder
Check your credit report
Create strong passwords
Purchase identity theft protection
Never share social security # |
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Term
| Explain how the debt snowball works |
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Definition
List all debts from smallest to largest
pay minimum payments to each debt except smallest
attack smallest debt with most intensity till payed off
after that move on to next debt on list
Continue the "snowball" till all debts have been paid off |
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