Chapter 4 Short Answers Flashcards
1
Q
Why do people go into debt when they know that they will have to pay more for an item once they figure interest
A
A person will spend 12-18% more using a card
2
Q
Why are teens such a major target of the credit card industry
A
Adults have all the cards the company can offer, so they target teenagers
3
Q
How do cash advance and car title companies keep people in the cycle of debt
A
Interest will keep coming if they don’t get it paid off
4
Q
Why is it better to buy a used car instead of a brand new vehicle
A
A car will lose value the second it leaves the lot, so you pay more than it’s worth
