Chapter 07 Assignment … Highlight your answers

  1. According to the text, for what do the letters FAFSA stand ?
  1. Using table 7.4,what is the payment for a 5 year, $15,000 loan at 14% interest.
  1. Give an example of what the text refers to as a “Captive Finance Company”
  1. According to the text, what is a lien ?
  1. Per the text, describe the “discount method” used to calculate loan finance charges?
  1. What is the effect of the “rule of 78s”
  1. What is are the three “federally sponsored” student loan programs ?
  1. According to the text, what is a prepayment penalty … AND … on what types of loans is it “often found”?
  1. For your personal income taxes, is the interest paid on auto, credit card, or otherconsumer loans deductible? (Google it ?)
  1. According to Co-Signing a Loan what are one of the things that could happen if the borrower you co-signed for misses a payment?
  1. According to the Payday Loans article, how long …AND…at what annual interest rate is the “typical payday loan borrower indebted ?
  1. Another 2-part question. Read 10 Ways to Reduce Debt. Then check out #8. What SPECIFICALLY do you have that would qualify … AND … In #9, what “habit” do you NEED to change? (Note: Re #8 - it is illegal to sell children – I know – I checked).
  1. According to Not All Debt is Bad, what are THREE examples of “good debt” ?
  1. Read 5 Ways to Get Out of Debt. What is the difference between “debt consolidation” … AND … “debt settlement” … AND … debt management ?
  1. ReadAvalanche or Snowball. What is the difference between these methods ?
  1. Review What You Need to Know. Since you already knew some methods of stealing id’s … what are THREE … methods that you did NOT already know.
  1. Review the article Identity Theft – More Than You Think. Which of the 8 types of identity theft was “news to you” ?
  1. According to Why Worry – I Don’t Have Anything “as a student, you may be even more vulnerable to identity theft because of the availability of your personal data and the way students handle this data”. This is illustrated by the findings of a recent national survey. List one of the three things found in that survey.
  1. In What Are ID Thieves Looking For ? why is stolen passport a potential problem?
  1. In How Long Does “Bad Debt” Haunt You- how long do “late payments” remain on your credit report … AND … how long does a Chapter 7 bankruptcy remain?

Personal Portfolio (5 points)

Okay – assume that your identity has been stolen. What do you do?

FIRST: Read (or maybe skim) this from the Federal Trade Commission

And then answer these questions:

a) List one of the “fraud alert” phone numbers given to any one of the credit bureaus

b) What exactly is a “credit freeze”

c) How do you get an “Identity Theft Affidavit” ?

d) How long does an “Extended Fraud Alert” stay on your credit file?