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Chapter 19 Financial Literacy Test Exam Questions with Correct Answers $10.49   Add to cart
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Chapter 19 Financial Literacy Test Exam Questions with Correct Answers
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  • Course
  • Financial Literacy
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  • Financial Literacy

What does is mean to be overextended? - Answer-Condition of having taken on financial or other commitments, beyond one's current capacity to pay or satisfy them on their due date What are some warning signs that you are becoming overextended? - Answer-You're spending more on your credit card tha...

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  • October 12, 2024
  • 4
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • chapter 19 financial literacy test exam questions
  • what does is mean to be overextended answer con

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  • Financial Literacy
  • Financial Literacy

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Chapter 19 Financial Literacy Test Exam
Questions with Correct Answers
What does is mean to be overextended? - Answer-Condition of having taken on
financial or other commitments, beyond one's current capacity to pay or satisfy them on
their due date

What are some warning signs that you are becoming overextended? - Answer-You're
spending more on your credit card than you're paying off
You're having trouble paying bills
Your retirement isn't being properly funded
You're buying merchandise without putting much down
You've created opportunities that could make you overextended

What is the 20/10 Rule? - Answer-Total borrowing should not exceed 20% of yearly
take home pay
Monthly payments should not total more than 10% of your monthly take home pay

Does the 20/10 Rule apply to all types of credit/borrowing? Explain. - Answer-No,
because it does not include mortgage

What is credit counseling? - Answer-Can help you set up a realistic budget, work with
your creditors to reduce interest rates, and help set up payment plans that you can
afford
Usually charge a fee for services

What is a debt adjustment service plan? - Answer-Finance company takes over you
checkbook, paycheck, and bills
They make payments on your credit accounts for 3-5 years
To be eligible, you must have a monthly income that is sufficient to pay off debts in 3-5
years

What is debt negotiation? - Answer-An alternative to bankruptcy for those who want to
pay back a portion of their debt and cannot afford the debt management plan

What is debt consolidation? - Answer-Finance company loans you money to pay off
your debts
You make payments to the finance company until your debt is paid off
You must have collateral, such as a house, to be eligible

What is a credit payment plan? - Answer-A record of your debts and a strategy for
paying them off

What is credit repair? - Answer-The process of reestablishing a good credit rating

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