PLANNED BORROWING & AUTO PURCHASES NAME ______

  1. How often do people use installment credit?
  2. What is planned borrowing?
  3. What are 3 things to remember when planning credit usage?
  1. What fact is presented about establishing a debt limit? What does that tell you about lenders?
  1. List the 3 things to consider when establishing a debt limit.
  1. Recreate the credit capacity indicator formula.
  1. Recreate the Debt to Equity Ratio.
  1. Using the chart on the slide:
  2. How does a borrower feel with 16-20% debt?
  3. What should the borrower do at 21-25% debt?
  4. What is the % limit where additional credit could cautiously be undertaken?
  1. What is one BEWARE for setting debt limits in a dual earner household.
  2. What are 3 types of loans in the language of Consumer loans?
  1. Using the chart on the slide, figure how much you would have to pay per monthIf you borrowed:
  2. $9000 for 5 years at 14%
  3. $9000 for 5 years at 8%
  4. $5000 for 3 years at 10%
  5. $5000 for 5 years at 10%
  6. $7000 for 2 years at 4%
  7. $7000 for 3 years at 6%
  8. What are 8 sources of consumer credit?
  1. List 2 things a creditor must disclose about your credit.
  1. What are 2 ways APR can be calculated for a single payment loan
  1. What are 3 ways APR can be calculated for an installment loan
  1. List the 10 signs of Over- indebtedness
  1. What are 2 types of debt collection?
  1. Using the chart on the slide, what year had the most bankruptcies? How many? The least? How many?
  1. What are 5 rules collection agencies must follow according to the Fair Debt Collection Act?
  1. What are 4 points to remember about Divorce and credit.
  1. List 4 alternative lenders.
  1. What are 7 ways to help manage over-indebtedness?
  1. List the 5 points to remember about student loan debt?
  1. When purchasing a car, what are 7 guidelines for wise buying?
  1. What are 3 things you should do BEFORE interacting with a seller of a car?
  1. List the 3 online resources for doing online car research.
  1. Evaluating alternatives to purchase.
  2. What are 2 sources for comparing used vehicles?
  1. What are 4 things to consider in leasing?
  1. In the “Buying v Leasing” slide, comparing the cost of each. What is better for you? Why?
  1. Determining a Purchase price:
  2. What 2 online sources can help you with used cars?
  1. What are 4 things to consider when financing a car purchase?
  1. What are some servicing alternatives once you purchase your car?
  1. What are 4 things to comparison shop related to a car purchase?
  1. What are 3 considerations when negotiating a deal
  1. Financial Aspects of Leasing:
  2. Define capitalized cost
  1. Define Residual value
  1. Using the decision making grid:
  2. What decision weight is the highest? Why do you think it is?
  1. What decision weight is the least? Why do you think it is?
  1. Which website offers a Buying service?
  2. List the 6 things you should consider when getting an automobile repair.
  1. If purchasing a new car, you may encounter a rebate or low interest rate decision, what 3 things should you consider.
  1. List 6 things you should consider when buying a used vehicle.
  1. What are 6 rules for getting the most out of your car buying $
  1. List the 6 things to consider when renting a car.