Finance 1 – Easy Geo

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According to the latest information from the Federal Reserve, credit debt has exceeded what dollar amount?

$3.5 Billion

$3.5 Bazillion

$3.5 Trillion

$3.5 Trazillion

There are no educational requirements to become a debt counselor.

True

False

How much money does the average American household spend on phone, internet, and cable service each month?

$600

$270

$635

$400

The average American household has 3 auto loans averaging $23,000 each.

True

False

There has been a dramatic increase in the number of car and student loans over the last 5 years.

True

False

Consolidators who make loans to cover existing debts often charge an annual percentage rate of what?

Between 25% and 30%

Between 0% and 5%

Between 10% and 21%

Between 21% and 50%

Financial debts are one of the primary causes of depression.

True

False

What are the primary objectives of a debt counselor/adviser? (Select all that apply)

Help clients manage their debts

Help clients examine their spending habits

Help clients understand the difference between a good debt and a bad one

Help clients by providing a loan to help them get out of debt

What is the primary difference between a debt advisor and a debt consolidator?

Debt advisors work with clients to merge their debts into a single bill , while consolidators help clients plan their financial future.

Debt advisors help their clients plan for their financial future, while consolidators work with clients to merge their debts into a single bill.

Debt advisors will often work to pay off a client's debts, while a consolidator offers the client a spreadsheet detailing their expenses.

Consolidators are always non-profit, and all debt counselors are trying to make a profit.

If you owe a company for a bill and you know you are going to be late, it may be a good idea to let them know ahead of time.

True. Some companies are willing to work with you.

False. Companies do not care.

Stage Name/Real Name Unit