bad idea? - The market value will change and the rates will rise, causing you to
slowly start paying more money.
Explain why financing a car is a bad idea. - You will be paying car payments every
day for the rest of your life and the value of your car is decreasing every day.
Describe the negative consequences of
taking on debt. What effect can debt have on
your future? - You will be bound to your debt for the rest of your life, and it will
affect whether or not you are able to make large purchases.
What are some things you can do to protect
your personal information? - Always check your credit report to make sure there
are no signs of identity theft.
Explain how the debt snowball works. - You start by saving money by paying off
the smaller debts and then using the money you save from not paying those
debts, you are able to save and pay off the bigger debts.
Myth 1: If I loan money to a friend or relative, I will be helping them. - Truth 1:
The relationship will be strained or destroyed.
Myth 2: By co-signing a loan, I am helping out a friend or relative. - Truth 2: The
bank requires a co-signer because the person isn't likely to repay.
Myth 3: Cash advance, payday lending, rent-to-own, title pawning, and tote-the-
note lots are needed services for lower income people to help them get ahead. -
Truth 3: These are horrible, greedy rip-offs that aren't needed and benefit no one
but the owners of these companies. They are predatory lenders.
Myth 4: The lottery and other forms of gambling will make me rich. - Truth 4: The
lottery is a tax on the poor and on people who can't do math.
Myth 5: You need a credit card to rent a car or make a purchase online or by
phone. - Truth 5: A debit card does all of that.