Term
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Definition
| according to the wall street journal ______ of americans are living paycheck to paycheck |
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Term
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Definition
| when it comes to debt if you tell a lie or spread a _____ long, enough, eventually it becomes accepted as the ____ |
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Term
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Definition
| debt has been ____ to us with such intensity for so long that to imagine living without it requires a complete _____ shift, a completely new way of looking at things |
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Term
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Definition
| 1910: in the sears catalog, credit card was called ____ |
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Term
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Definition
| _____ didnt believe in debt and would not allow credit to be given in his stores. It wasnt until after his death in 1971 that credit was widely accepted in ______ stores |
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Term
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Definition
| _________ hated debt and would not offer credit on cars for 10 years after general motors began offering credit |
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Term
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Definition
| established partenships with several new york city restraunts and his goal was to allow patrons the ability to pay for meals with a single payment card the first credit card |
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Term
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Definition
| west coast bank of america issued a little piece of plastic called the bankamericard(____) to its customers later that year american express was born |
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Term
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Definition
| 1970: only _____ of american owned credit cards |
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Term
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Definition
myth 1
Myth: if i _____ money to a friend or relative, i will be helping them
Truth: the relationship will be strained or ______ |
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Term
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Definition
Myth2
Myth; by ______ a loan, i am helping out a friend or relative
truth: the bank requires a cosigner becuase the person isnt likely to ____. be ready to pay the loan and have your credit damaged |
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Term
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Definition
Myth 3
Myth: ________ _______ rent to own, title pawning , and tote the note lots are needed _______ for lower income people to help them get a head
truth: these are horrible greedy rip offs that arent needed and benefit no one but the owners of these companies |
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Term
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Definition
| 80% of ____ in america are first generation rich. that means they started out with nothing, did smart stuff, and become _____ thats the opposite of what were talking about here |
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Term
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Definition
myth 4
Myth: the _____ and other forms of gambling will make me ___
truth: the lottery is a ___ on the poor and on people who cant do math |
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Term
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Definition
| texas tech university did a study on the texas lottery and found that people without a high school dimploma spent an average ____ a month playing the lottery.college graduates spen ____ a month on average |
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Term
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Definition
Myth 5
Myth: ___ payments are a way of life and youll always have one
Truth: staying away from car payments by driving reliable used cars is what the typical _______ does
that is how they became millionaires |
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Term
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Definition
| the average car payment today is____ per month over 64 months |
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Term
leasing
leasing
expensive |
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Definition
myth 6
myth: _____ you car is what sophisticated financial people do. you should always lease things that go down in value there are tax advantages
truth: consumer reports, smart money magazine and a good calculator will tell you that the car ____ is the most ___ way to finance and operate a vehicle |
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Term
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Definition
myth 7
myth: you can get a good deal on a ____ car
truth: a new car loses ___ of its value in the first four years this is the largest purchase most consumers make that goes down in value |
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Term
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Definition
myth 8
myth: ill take out a 30year mortgage pay ___
truth: life happens and something else will always seem more important. never take out more than a ___ year fixed mortgage |
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Term
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Definition
| cheaper in long run to a ____ |
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Term
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Definition
Myth 9
myth: its wise to take out an ___ or a ____ mortgage if " i know ill be moving
truth: you will be moving when they ___ |
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Term
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Definition
| The adjustable rate mortgage is here to keep the ___ from losing money it transfers the ____ of higher interest rates to you |
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Term
credit card
purchase
debit |
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Definition
myth 10
myth: you need a ______ to rent a car or make ____ online or by phone
truth: a ___ card does all that |
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Term
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Definition
myth 11
myth: i pay my ____ off every month with no annual payment or fee. i get brownie points, airm miles and a free hat
truth: when you use cash instead of plastic you spend ____ less because spending cash hurts |
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Term
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Definition
myth 12
myth: ill make sure my ___ gets a credit card so he or she can learn to be responsible with money
truth: teens are a huge _____ of credit card companies today |
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Term
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Definition
myth 13
myth: the home equity loan is good for _______ and is a substitute for the emergency fund
truth: you dont go into ____ for emergencies |
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Term
consolidation
payments
con |
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Definition
myth 14
myth: debt ____ saves interest and you get a smaller ____
truth: debt consolidaion is a _____ |
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Term
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Definition
you will stick to the same card forever
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Term
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Definition
| debt consolidation saves little or no ____ because you will throw you low interest loans into the deal |
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Term
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Definition
| you cannot ___ your way out of debt |
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Term
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Definition
| _______ payments equal more ___ in debt |
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Term
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Definition
myth 15
myth: debt is a ____ it should be used to create prosperity
truth: the________ is slave to the lender |
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Term
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Definition
| when surveyed the forbes 400 were asked, what is the most important key to building wealth? ____ replied that becoming and staying ___ free was the nymber one key to wealth |
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
| part time ___ or ____ (temporarily) |
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Term
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Definition
use the ______ _________
it is where you list all your debts to pay them off
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Term
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Definition
| technique of getting out of debt is -______________ |
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Term
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Definition
| "Caveat Emptor" means __________ _______________ |
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Term
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Definition
| companies use every angle to aggressively compete for your ______ |
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Term
1. personal selling
2. financing as a marketing tool
3. tv, radio, internet and other media
4. production positioning |
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Definition
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Term
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Definition
brand recognition
color
shelf position
package |
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Term
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Definition
| a "significant purchase" is normally anything over _______ |
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Term
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Definition
| our bodies go through physiological changes when making ___________ |
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Term
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Definition
| we all have that spoiled, red faced,grocery store kid living inside of us. his name is _____ |
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Term
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Definition
| you can always spend more than you ____. You must develop ____ over ______ by following these steps |
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Term
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Definition
step 1
Wait ____ before making a purchase |
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Term
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Definition
consider your buying _____.
No amound of stuff equals _________ or fulfillment |
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Term
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Definition
step 3
never buy anything you do not ___________ |
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Term
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Definition
step 4
consider the "_______ _______" of your money |
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Term
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Definition
step 5
seek wise ____
( from spouse or if single accountability from someone else) |
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Term
| Food. clothing. shelter ( utlities). transportation |
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Definition
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Term
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Definition
one more myth
myth: you ned to take out a credit card or car loan to " build up your _________ _____."
truth: the _____ score is an "i love ____" score and is not a measure of winning financially |
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Term
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Definition
| fico stands for ____ _____ _______ |
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Term
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Definition
| account information is removed from your credit score ___ years after the last activity on the accoun except for a chapter 7 bankrupty which stays on for __ years |
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Term
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Definition
| beware of credit clean up scams. the only informationthat may be legally removed from credit report is ______ information |
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Term
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Definition
| ___ of those credit reports contained mistakes of some sort and ___ of them contained errors serious enough to result in the denial of credit |
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Term
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Definition
| __ of the credit reports contained credit accounts that had been closed by the consumer but incorrectly remained listed as open |
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Term
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Definition
| listed the same mortgage or loan twice |
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Term
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Definition
| you should check your credit ______ which you can now do for free |
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Term
| experian, Transunion, and equifax |
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Definition
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Term
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Definition
| identity theft is the fastest growing ______ ______ crime in north america |
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Term
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Definition
| place a ______ ______ alert on your credit bureau report ( stays on 90 days without a police report) |
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Term
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Definition
get a _______ _______
80% of identities are stolen by people you know |
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Term
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Definition
| remember this is _______. You owe ________ and should pay ________ |
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Term
fraud victim
documentation |
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Definition
| contact the _____ ____ division of each creditor and furnish _________ |
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Term
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Definition
| Be _______ this will take some time. You know have a new _______ |
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Term
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Definition
| an updated vrsion of the 1977 Federal Fair Credit Reporting Act (FFCRA) requires a credit bureau to ____ all inaccuracies within ____ days of notification of such inaccuracies |
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Term
write a seperate letter for each inaccuracy
staple a copy of your credit report to each letter
circle the account number |
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Definition
| to clean your credit report of inaccurate information take the following steps |
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Term
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Definition
| You should also request that inquiries be removed. all these letters should be sent _____ mail with return reciept requested to prove when they recieve the letter. If the credit bureau does not prove the accuracy of the account within __ days request that they remove the ____ account from your file |
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Term
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Definition
| the best way to pay debt is with a ____ |
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Term
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Definition
| A collectors job is not to help your overall situation. His only job is to get your ________ |
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Term
salespeople
telemarketers |
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Definition
| collectors are trained _________ or ___________ |
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Term
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Definition
| They are typically low- paid positions with high _______ |
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Term
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Definition
| They are taught in their traning to evoke strong _____ |
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Term
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Definition
| the way to counteract this technique is to ALWAYS pay _______ ________ first, and then you set the order of payment |
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Term
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Definition
________ a consumer law was passed by congress called the federal fair debt collection practices act (FFDCPA)
to protect you from unfair collectors. The law technically only applies to collection agencies ( not your creditor) but later court cases make most creditors also abide by the FFDCPA |
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Term
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Definition
| The act states that ________ is illegal, and restricts a collectors call between the hours of ____ and _____ ( unless they have your permission) |
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Term
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Definition
| the act also allows you to demand that a creditor cease calling you at ____. You should request this in writting by ______ ____ with a return reciept requested |
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Term
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Definition
| the act even allows you to insist that a creditor stop ____ contact except to notify you of ______ proceedings. This is called a cease and desist letter |
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Term
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Definition
| no collector or creditor may _____ a bank account or _____ wages without proper and lengthy court action except in the case of delinquent IRS or student loan debt. All such threats are a bluff |
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Term
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Definition
| your plan should include as much prompt _____ of debt as possible but you must set your priorties of repayment |
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Term
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Definition
| do not let a collector use your ___ ____ as a paper club |
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Term
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Definition
| when you are unable to pay the minimum payments, use the ____ ____ plan |
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Term
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Definition
| process by which the holder of a mortgage sells the property of a homeowner who has not made interest an/ or principal payments on time as stipulated in the mortgage contract |
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Term
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Definition
| think of the repo man. repossession is taking something back (like a car) for failure to make payments |
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Term
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Definition
| a legal procedure for dealing with debt problems of individual and business . and stays on your credit report 10 years |
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Term
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Definition
| a court ordered attachment that allows a lender to take monies owed directly from a borrowers paycheck, only allowed as part of a court judgment |
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Term
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Definition
| in a bankruptcy proceeding, a debtor can give up property (collateral) to the creditor in exchange for a clean state |
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Term
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Definition
| broadly refers to a borrower not being current on his or her payment |
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Term
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Definition
| eventually if you are making no payments and have cut no deals you will get _____ |
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Term
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Definition
| typlically lawsuits for under ________ are filed in general sessions court (or small claims court) which is a fairly informal proceeding |
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Term
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Definition
| before you are sued you will be served by the local sheriffs department and typically given __ days notice of the court date |
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Term
lose
judgement
garnishment |
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Definition
| in court, if the debt is valid,even if you fight, you will ____. From that date you will generally have 30 days before the ______ becomes final and ____ or attachments begin |
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Term
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Definition
| at any time during the process you may settle with the creditor or their attorney in writing. If you are not able to reach an agreement, you cna file with the court a "____ ____ motion," called a "paupers oath" in some states |
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Term
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Definition
| if you are going to ____, get it in writing |
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Term
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Definition
| never give _____ ______ to your checking account |
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Term
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Definition
| never give _____ ____ checks |
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Term
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Definition
| fee charged by credit card company for the use of their credit card |
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Term
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Definition
| cost of borrowing money on an annual basis takes into account the interest rate and other related fees on a loan |
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Term
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Definition
| home loan secured by a deed of trust or mortgage in which the interest rate will chang periodically (ie annually) typically adjusted based on a published index such as treasurt bill or LIBOR brought on as a result of high interest rates in the early 1980s as a way for banks to transfer the risk of higher interest rates to the consumer |
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Term
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Definition
| home loan in which the sum of the monthly payments is insufficient to repay the entire loan, a final payment comes due, which is a lump sum of the remaining principal balance |
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Term
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Definition
| tool used to finance a purchase |
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Term
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Definition
| type of card often bearing the seal of a major credit card company issued by a bank and used to make purchases unlike a credit card the money comes directly out of a checking account also called a check card |
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Term
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Definition
| act combining all debts into one monthly payment typically extending the terms and the length of time required to repay the debt |
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Term
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Definition
| preferred method of debt repayment includes a list of all debts organized from smallest to largest balance minimum payments are made to all debts except for the smallest which is attacked with the largest possible payments |
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Term
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Definition
| a decline in the value of property the opposite of appreciation |
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Term
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Definition
| time period during which a borrower can pay the full balance of credit due with no finance charge |
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Term
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Definition
| credit line offered by mortgage lenders that allows a homeowner to borrow money against the equity in their home |
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Term
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Definition
| a long term rental agreement and a form of secured long term debt |
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Term
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Definition
| information that has been passed on but not true |
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Term
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Definition
| your believe system the way you see or percieve things |
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Term
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Definition
| expense that a taxpayer is allowed to deduct from taxable income examples include money paid as home mortgage interest and charitable donations |
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Term
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Definition
| regretting a purchase soon after making it |
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Term
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Definition
| to buy an item with credit, paying over time |
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Term
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Definition
| having a beginning and an end |
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Term
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Definition
| the true cost of something in terms of what you have to give up to get the item the benefits you would have recieved by taking other action |
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Term
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Definition
| pre payment penalty in a financing contract the portion of a "90 day same as cash" agreement that states that the entire loan amount plus the interest accumulated over the first 90 days becomes due immediately |
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Term
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Definition
| an agency which colects the credit history of consumers so that creditors can make decisions about granting loans |
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Term
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Definition
| chapter of the bankruptcy code providing form liquidation of the debtors assets in order to repay the creditors certain assets or aggregate value of assets or the debtor may be exempt based on state law |
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Term
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Definition
| amount of money left over after all necessities and expenses are paid |
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Term
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Definition
| a sellers intentional deception of a buyer which illegal |
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Term
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Definition
| debt repayment plan by which the borrower repays each lender a fair percentage of the total debt owed when one cannot make the minimum payments on ones debt |
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Term
| food, clothing, shelter (utilities), transportation |
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Definition
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