Which of the following methods calculates interest on the full amount of the original principal?
Add- on interest method
. The finance charge may include which of the following: Interest costs, Service charges, Credit-related insurance premiums, and appraisal fees.
When more than one payment is made on a simple interest loan the method of computing interest is known as the quizlet?
Terms in this set (24)
When more than one payment is made on a simple interest loan, the method of computing interest is known as
the declining balance method
.
Which one of these methods is the fairest of calculating interest?
The fairest method of calculating interest is
the adjusted balance method
.
Which of the following financially supports the Consumer Credit Counseling Service with contributions?
Question: Who financially supports the Consumer Credit Counseling Service? Answer
National Foundation for Consumer Credit
.
How do consumer credit counseling services help individuals with excessive debt quizlet?
Credit Counseling Services can often work with creditors to obtain
changes in
the terms of a debt such as reduced interest rates and lower monthly payments to assist in the elimination of consumer debt.
What loan is most expensive?
The most expensive loans are available from
finance companies, retailers, and credit cards
. Borrowing from car dealers, appliance stores, department stores, and other retailers is relatively inexpensive. Today borrowing and credit are more complex than ever.
What is an interest rate example?
Interest is the cost of borrowing money, and an interest rate
tells you how quickly those borrowing costs will accumulate over time
. For example, if someone gives you a one-year loan with a 10% interest rate, you'd owe them $110 back after 12 months.
What is the method of computing interest called?
Terms in this set (13)
add-on interest method
. A method of computing interest in which interest is calculated on the full amount of the original principal. adjusted balance method. Finance charges are added after subtracting payments made during billing period.
What is the most commonly purchased type of credit insurance?
The most commonly purchased type of credit insurance is:
credit life insurance
.
What is the total dollar amount you pay to use credit called?
Finance charge
—The total dollar amount you pay to use credit, including interest, late charges and other fees. Fixed interest rate—An interest rate that does not change during the term of the loan.
How can I pay off my debt when broke?
- Create a Budget.
- Broke or Overspent?
- Put Together a Plan.
- Stop Creating Debt.
- Look for Ways to Cut Your Expenses.
- Increase Your Income.
- Ask for a Lower Interest Rate.
- Pay on Time and Avoid Fees.
What happens when you cant pay a bill?
If you don't pay your bills on time you
may face disconnection, restriction or debt recovery action by your provider
. If you're having difficulty managing payments on your bills, seek help early to access assistance and avoid debt and disconnection.
What are some options for debt relief?
- Forbearance. …
- A loan modification. …
- Principal reduction. …
- Loan deferment. …
- Refinancing. …
- Contact a credit counseling agency. …
- Debt settlement program. …
- Ask for a hardship program.
What is a 20 10 rule?
How Much Can You Safely Borrow? (The 20/10 Rule) 20:
Never borrow more than 20% of yearly net income* 10: Monthly payments should be less than 10% of monthly net income*
Which one of these is the fairest method of calculating finance charges on a credit card quizlet?
The fairest method of calculating interest is
the adjusted balance method
.
What is a disadvantage of paying with your credit card?
Disadvantages of using credit cards
Encouraging impulsive and unnecessary “wanted” purchases
.
High-interest rates if not paid in full by the due date
.
Annual fees for some credit cards
– can become expensive over the years. Fee charged for late payments.
