Monday
The cost of borrowing money.
What is interest?
Price of money.
What is interest?
****As of today, how many days has Mr. Zilkha been alive?
What is 20,563?
to get out of debt, you focus on debt with the lowest balance. This is an example of which method? (hint: start small and it GROWS)
What is the snowball method?
The exact score from minimum to maximum for a possible credit score is
What is 300 - 850?
The ability to obtain goods and services now while paying for them in the future.
What is credit?
the amount of money an insured person is responsible for paying out-of-pocket before their insurance company starts covering the cost of a claim.
What is a deductible?
the amount of money a policyholder pays to an insurance company in exchange for coverage.
What is a premium?
the maximum amount an insurance company will pay for a claim under a specific policy.
What is a limit?
Name three groups that would be interested in knowing your credit score.
Insurance companies, landlords, employers, credit card companies, telecommunications, public utilities.
Paying more than the minimum payment or paying your balance in full at the end of each cycle (month) is beneficial because this will lower...
What is interest? (total interest)
The three major institutions that collect and maintain information about individuals' credit histories.
Who is Equifax, Experian, & TransUnion?
payment received in exchange for resources provided
What is income?
Recommended value (in percent) of keeping your credit utilization below.
What is 30%?
a person or company to whom money is owed.
Who is a creditor?
The four debt repayment strategies we discussed (You get 50% for three)
What is snowball, avalanche, consolidation, and utilization?
These are all in your credit report EXCEPT -
1. Amount of money in your checking account
Placing a negative mark on your credit report, charge you late payment fees, increasing your interest rate, sending your account to a collection agency, freezing your bank account, seizing assets, wage garnishment.
Things that can happen if you don't pay off your debt.
Formula for credit utilization.
Total Outstanding Balance on Credit Accounts
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Credit Limits
They collect and maintain information about individuals' credit histories.
What are credit bureaus (credit reporting agencies)?
You have $800 borrowed on a credit card that has a limit of $2500. You have another $1400 borrowed on a limit of $7500. What is your credit utilization rate?
What is 22%?
the percentage of your available credit that you're using on credit cards and other revolving credit accounts.
What is credit utilization?
Convenience, record keeping, loans, cash advances, member perks...
What are the advantages to using credit cards? (Credit)
LAST QUESTION - If you owe $1,000 on a credit card with a 20% APR and only make the minimum payment of 2.5% of the balance each month, approximately how long will it take to pay off the full balance? Closest answer wins.
What is 8 years?
Your grandma gives you a car for free. You’ve had auto insurance since January 1st, paying a premium of $150 per month on the first of each month. Your deductible is $1,200.
On July 19th, you get into an accident, and the repair bill is $3,000.
By the end of July, how much money have you spent in total (including all premiums paid since January and your deductible)?
What is (7 x $150) + $1,200 = $2,250